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A Dealer Buys an Article at a Discount of 30% from the Wholesaler, the Marked Price Being Rs. 6000. the Dealer Sells It to a Shopkeeper at a Discount of 10% on the Marked Price. If the Rate of the Vat is 6%, Find - ICSE Class 10 - Mathematics

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Question

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being Rs. 6000. The dealer sells it to a shopkeeper at a discount of 10% on the marked price. If the rate of the VAT is 6%, find

1) The price paid by the shopkeeper including the tax.

2) The VAT paid by the dealer

Solution

Marked price of the article = Rs. 6,000.

A dealer buys an article at a discount of 30% from the wholesaler

∴ Price of the article which the dealer paid to the wholesaler

= 6000 - 30% of 6000

`= 6000 - 30/100 xx 6000`

= Rs 4200

Sales tax paid by dealer = 6% of 4200 = `6/100 xx 4200` = Rs 252

∴Amount of the article inclusive of sales tax at which the dealer bought it

= Rs.4200 + Rs.252 = Rs.4452

Dealer sells the article at a discount of 10% to the shopkeeper.

∴ Price of the article which the shopkeeper paid to the dealer

= 6000 - 10% of 6000

`= 6000 - 10/100xx6000`

= Rs 5400

Sales tax paid by shopkeeper  = 6% of 5400 = `6/100xx 5400` = Rs 324

∴ Amount of the article inclusive of sales tax at which the shopkeeper bought it

= Rs.5400 + Rs.324 = Rs.5724

The value added by dealer =  Rs.5400 - Rs.4200 = Rs.1200

Amount of VAT paid by dealer

= 6% of 1200

`= 6/100 xx 1200`

= Rs 72

∴ Price paid by shopkeeper including tax is Rs 5724

∴ VAT paid by dealer is Rs.72.

  Is there an error in this question or solution?

APPEARS IN

 2015-2016 (March) (with solutions)
Question 9.1 | 3.00 marks

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Solution A Dealer Buys an Article at a Discount of 30% from the Wholesaler, the Marked Price Being Rs. 6000. the Dealer Sells It to a Shopkeeper at a Discount of 10% on the Marked Price. If the Rate of the Vat is 6%, Find Concept: Introduction to Sales Tax and Value Added Tax.
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