Question

A shopkeeper sells an article at its list price ($Rs.3,000$) and charges sales-tax at the rate of $12\%$. If the VAT paid by the shopkeeper is Rs. $72$, at what price did the shopkeeper buy the article inclusive of sales-tax ?

• A. Rs. $2688$
• B. Rs. $2966$
• C. Rs. $3422$
  
• D. Rs. $3966$
  

Answer 1

The correct option is A Rs. $2688$

Shopkeeper sells the article at list price that is at Rs.$3000$

Rate of sales tax$=12\%$

VAT paid by the shopkeeper$=Rs.72$

Tax earned by the shopkeeper$=12\%of3000$$=\frac{12}{100}\times 3000=Rs.360$

VAT$=$ Tax earned by the shopkeeper-Tax paid by the shopkeeper

$\therefore$Tax paid by the shopkeeper$=$Tax earned by the shopkeeper-VAT

$\Rightarrow$ Tax paid by the shopkeeper$=Rs.(360-72)=Rs.288$

Let the shopkeeper buy the article at $Rs.x$

$\therefore 12\%ofx=288$

$\Rightarrow \frac{12x}{100}=288$

$\Rightarrow x=\frac{288\times 100}{12}=Rs.2400$

Price of the article inclusive tax$=Rs.(2400+288)=Rs.2688$