Question

Allowing 20% discount on the marked of an article and levying 15% VAT, buyer has to payer has to pay Rs 9200 for the article .Find the mp of the article

Answer 1

Answer:

Solution

Correct option is

B

(i) Rs. 562.50 (ii) Rs. 12.50

Marked Price, M.P.=Rs. 500

Discount=20%

∴, Selling price of the article for wholesaler=Rs. (500−20% of 500)

=Rs. (500−

100

20

×500)

=Rs. (500−100)

=Rs. 400

Tax paid by the wholesaler=Rs.

100

12.5

×400=Rs. 50.0

(i)The price paid by the customer

M.P.=Rs. 500

Sales tax rate =12.5%

Price paid by the customer =Rs. (500+

100

12.5

×500)

=Rs. (500+62.5)

=Rs. 562.50

Tax paid by the customer=Rs.

100

12.5

×500

=Rs. 62.50

(ii)The amount of the VAT paid by the retailer:

VAT=Tax paid by the customer − Tax paid by the retailer

VAT=Rs. (62.50−50)=Rs. 12.50