1. (i) A shopkeeper buys an article from the wholesaler at $ 72 and pays sales tax at the rate of 10%. The shopkeeper fixes the price of the article at $ 90 and charge sales tax at 10% from the consumer. Apply VAT system of sales tax to calculate the following.
(a) Find the input tax and output tax for the shopkeeper.
(b) Find the VAT that the shopkeeper pays to the government.
(c) Find the profit percent made by the shopkeeper.
(ii) A shopkeeper buys 10 phials of a medicine for $ 560 and pays sales tax at the prescribed rate of 4%. He sells 6 phials at $ 65 per phial and charges sales tax from the buyer at the prescribed rate.
(a) Find the input tax and output tax for the shopkeeper against the sale of 6 phials.
Answers
Answer:.(a) Find the input tax and output tax for the shopkeeper.(b) Find the VAT that the shopkeeper pays to the government.(c) Find the profit percent made by the shopkeeper.(ii) A shopkeeper buys 10 phials of a medicine for $ 560 and pays sales tax at the prescribed rate of 4%. He sells 6 phials at $ 65 per phial and charges sales tax from the buyer at the prescribed rate.(a) Find the input tax and output tax for the shopkeeper against the sale of 6 phials.Step-by-step explanation:shopkeeper buys an article from the wholesaler at $ 72 and pays sales tax at the rate of 10%. The shopkeeper fixes the price of the article at $ 90 and charge sales tax at 10% from the consumer. Apply VAT system of sales tax to calculate the following.(a) Find the input tax and output tax for the shopkeeper.(b) Find the VAT that the shopkeeper pays to the government.(c) Find the profit percent made by the shopkeeper.(ii) A shopkeeper buys 10 phials of a medicine for $ 560 and pays sales tax at the prescribed rate of 4%. He sells 6 phials at $ 65 per phial and charges sales tax from the buyer at the prescribed rate.(a) Find the input tax and output tax for the shopkeeper against the sale of 6 phials.