Question

A shopkeeper bought a washing machine at a discount of 20% from a wholesale, the printed price of the washing machine being Rs. 18,000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find 

(i) The VAT paid by the shopkeeper 

(ii) Total amount that he consumer pays for the washing machine.

Answer 1

Discount of 10% on 24,000 = 2,400 

∴ S.P = 24,000 – 2,400 = 21,600 

(i) The amount paid by the cutstomer = 21,600 + 10% of 21,600 = 21,600 + 2160 

The amount paid by the customer = Rs. 23,760. 

(ii) VAT paid by shopkeeper = VAT% (S.P – Shopkeepers S.P) = 10% (21,600-16,800)