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Question
On seeing the above display board outside Pearl Stationery Shop, Chetan enters the shop to buy the following items:
| Pen | Pencil | Rainbow Cover Notebook |
|
| Price | ₹ 5 each | ₹ 7 each | ₹ 200 each |
| Discount | 5% on a dozen pens |
10% on 20 pencils |
, |
| Premium | – | – | ₹ 50 on each notebook |
| Items purchased |
1 dozen | 20 pencils | 5 |
| GST | 18% | 12% | 12% |
The shopkeeper handed over the bill to Chetan saying that he has given further discount of 2% on total bill. Chetan became so happy hearing about the discount that he did not check the bill until he reached home. He later found out that though shopkeeper has given 2% discount as promised, he had also charged uniform 18% GST on all the items.
- Calculate:
- total selling price of all the items as per the offers displayed on the board.
- total amount to be paid by Chetan including GST with correct rates.
- actual amount charged by the shopkeeper.
- Did the shopkeeper overcharge Chetan? Justify your answer.
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Solution
a.
For pen:
No. of pens purchased = 12
Price of 12 pens = ₹ 5 × 12 = ₹ 60
Discount (D): 5% on dozen pens.
`D = 5/100 xx 60`
= 3
Price after discount = ₹ 60 – ₹ 3
= ₹ 57
GST = 18%
= `18/100 xx 57`
= ₹ 10.26
Total price: ₹ 57 + ₹ 10.26
= ₹ 67.26
For pencil:
No. of pencils purchased = 20
Price of 20 pencils = ₹ 7 × 20 = ₹ 140
Discount (D): 10% on 20 pencils.
`D = 10/100 xx 140`
= ₹ 14
Price after discount = ₹ 140 – ₹ 14
= ₹ 126
GST = 12%
= `12/100 xx 126`
= ₹ 15.12
Total price: ₹ 126 + ₹ 15.12 = ₹ 141.12
For notebook:
No. of notebooks purchased = 5
Price of 5 notebooks = ₹ 200 × 5 = ₹ 1000
Premium (P): ₹ 50 on each notebook
Total premium: ₹ 50 × 5 = ₹ 250.
Price after premium = ₹ 1000 + ₹ 250
= ₹ 1250
GST = 12%
= `12/100 xx 1250`
= ₹ 150
Total price: ₹ 1250 + ₹ 150 = ₹ 1400.
i. Total selling price of all items
= ₹ 57 + ₹ 126 + ₹ 1250
= ₹ 1433
Hence, total selling price = ₹ 1433.
ii. Total price paid (including GST)
= ₹ 67.26 + ₹ 141.12 + ₹ 1400
= ₹ 1608.38
Hence, total price paid (including GST) = ₹ 1608.38.
iii. On applying incorrect GST rates:
On pen:
Price after discount = ₹ 57.
GST = 18%
= `18/100 xx 57`
= ₹ 10.26
Total price: ₹ 57 + ₹ 10.26 = ₹ 67.26
On pencil:
Price after discount = ₹ 126.
GST = 18%
= `18/100 xx 126`
= ₹ 22.68
Total price: ₹ 126 + ₹ 22.68 = ₹ 148.68
For notebook:
Price after premium = ₹ 1250.
GST = 18%
= `18/100 xx 1250`
= ₹ 225
Total price: ₹ 1250 + ₹ 225 = ₹ 1475.
When the GST rate is applied as 18% uniformly, bill need to be paid by Chetan:
= ₹ 1475 + ₹ 148.68 + ₹ 67.26
= ₹ 1690.94
Discount given on total bill = 2%
`2/100 xx 1690.94 = 33.82`
Bill = ₹ 1690.94 – ₹ 33.82 = ₹ 1657.12
Hence, bill = ₹ 1657.12.
b. The bill should be of ₹ 1608.38 but instead it was of ₹ 1657.12
⇒ ₹ 1657.12 – ₹ 1608.38 = ₹ 48.78
Hence, the shopkeeper overcharged an amount of ₹ 48.78.
