Question

manufacturer sells a product to its wholesaler for ₹ 25000. He marks the

price 20% above his cost price and sells it to a retailer at 10% discount on

the marked price. If the sale is intra state and rate of GST is 9%, find

(i) The marked price

(ii) Retailer’s cost price inclusive of tax.

(iii) GST paid by the wholesaler​

Answer 1

Answer:

(i) The marked price = Rs 30,000

(ii) Retailer’s cost price inclusive of tax = Rs 29,430

(iii) GST paid by the Wholesaler = Rs 2,250

Step-by-step explanation:

Given:

manufacturer sells a product to it Wholesaler for ₹ 25000

wholesaler marked price 20% above cost price

Sells it to a retailer at 10% discount on the marked price

Solution :

★ The sale is intra state

(i) The marked price:

⇒ 25,000 + 20 % of 25,000

⇒ 25,000 + 5,000

⇒ Rs 30,000

The marked price = Rs 30,000

_________________________

(ii) Retailer’s cost price inclusive of tax :

⇒ CP marked price - Discount

⇒ 30,000 - 10 % of 30,000

⇒ 30,000 - 3,000

⇒ 27,000

Inclusive of tax :

⇒ 27,000 + 9 % of 27,000

⇒ 27,000 + 2,430

⇒ 29,430

Retailer’s cost price inclusive of tax = Rs 29,430

_________________________

(iii) GST paid by the Wholesaler :

⇒ 9 % of 25,000

⇒ 2,250

GST paid by the Wholesaler = Rs 2,250