A shopkeeper buys a camera at a discount of 20% from a wholesaler. The printed price of the camera is Rs. 1600 and the rate of sales tax is 6%. The shopkeeper sells it to a buyer at the printed price and charges tax at the same rate. Find:

(i) The price at which the camera can be bought.

(ii) The VAT (Value Added Tax) paid by the shopkeeper.

Rs. 1365, Rs. 24.45

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Rs. 1356.80, Rs.19.20

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Rs. 1456, Rs.29.20

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Rs. 1356.80, Rs. 96

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Solution

The correct option is B
Rs. 1356.80, Rs.19.20

(i) Price at which the camera can be bought

= 80% of 16,00 + 6% of 80% of 1600

= Rs. 1280 + Rs. 76.80

= Rs. 1356.80

(ii) For wholesaler, VAT = 6% of 1280 = Rs,. 76.80

For buyer, VAT = 6% of 1600

= $(\frac{6}{100})$ $\times$ 1,600

= Rs. 96

VAT paid by the shopkeeper = Rs. 96 – Rs. 76.80 = Rs.19.20

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Similar questions

A shopkeeper buys a camera at a discount of 20% from the wholesaler, the printed price of the camera being ₹ 1600 and rate of sales tax is 6 %. The shopkeeper sells it to the buyer at the printed price and charges sales tax at the same rate. Find

i) the price at which the camera can be bought

ii) the VAT ( Value Added Tax) paid by the shopkeeper

Q. A shopkeeper buys an article at a discount of

30 %

from the wholesaler (the printed price of the article being Rs. 2,000) and paid sales-tax at the rate of

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. The shopkeeper sells the article to a buyer at the printed price and charges tax at the same rate. Find the VAT (Value Added Tax) paid by the shopkeeper.

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and pays sales-tax at the rate of

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2, 500

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(ii) the price paid by the customer
(ii) the VAT (Value Added Tax) paid by the shopkeeper.

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to the shopkeeper. The shopkeeper sells the article to the customer at the printed price. Sales tax (under VAT) is charged at the rate of

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