1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

# The printed price of an article is Rs. 2,500. A wholesaler sells it to a retailer at 20% discount and charges sales-tax at the rate of 10%. Now the retailer, in turn, sells the article to a customer at its list price and charges the sales-tax at the same rate. Find:(i) the amount that retailer pays to the wholesaler(ii) the VAT paid by the retailer

A
(i) Rs. 1,600 (ii) Rs. 90
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
B
(i) Rs. 1,900 (ii) Rs. 20
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
C
(i) Rs. 2,100 (ii) Rs. 70
No worries! Weâ€˜ve got your back. Try BYJUâ€˜S free classes today!
D
(i) Rs. 2,200 (ii) Rs. 50
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

## The correct option is D (i) Rs. 2,200 (ii) Rs. 50(i)The amount paid by retailerList Price=Rs.2500Discount rate=20%Discount=20% of 2500=20100×2500=Rs.500Then the price of the article after discount=2500−500=Rs.2000Rate of sales tax=10%∴Tax paid by the retailer=10% of 2000⇒10100×2000=Rs.200∴ retailer pay the amount to the wholeseller=2000+200=Rs.2200(ii)VAT paid by the retailerRetailer sell the article to customer at list price=Rs.2500Rate of sales tax=10%∴ Tax paid by the customer=10% of 2500⇒10100×2500=Rs.250VAT=Tax paid by the customer-Tax paid by the retailerVAT=250−200=Rs.50

Suggest Corrections
0
Join BYJU'S Learning Program
Related Videos
Sales Tax and Value Added Tax
MATHEMATICS
Watch in App
Explore more
Join BYJU'S Learning Program