Question

Wholesaler buys a clock from the manufacturer for 4000 rupees. He marks the price of the clock 25% above its cost price and sells it to a retailer at 10% discount on the MP. The Retailer sells to the customer at its MP. If the GST rate is 18%, find GST paid by the retailer, price paid by customer, the gst paid by the wholesaler to the State government

Answer 1

Step-by-step explanation:

Since we have given that

Marked price = Rs. 4000

Price of clock is 25% more than his cost price,

So, new price becomes



Discount % = 10%

So, amount of discount becomes,



New price becomes



Rate of GST = 10%

So, it becomes,



So, Cost including tax becomes



Hence, the required price is Rs. 4950.

# learn more:

A manufacturer sells an article to a wholesaler with marked price ` 2000 at a

discount of 20% on the marked price. The wholesaler sells it to a retailer at a

discount of 12% on the marked price. The retailer sells the article at the marked

price. If the VAT paid by the wholesaler is ` 11.20, find the:

(i) Rate of VAT

(ii) VAT paid by the retailer.