Question

The printed price of an article is Rs. $9,600$. A shopkeeper buys it at a discount of $20\%$ and sells it at the printed price. Find the amount of VAT paid by the shopkeeper, if the rate of Sales Tax is $10\%$.
Also, find the profit made by the shopkeeper, if he spends Rs. $120$ on the transportation of the article.

• A. $Rs.153$ and $Rs.1,200$
• B. $Rs.169$ and $Rs.1,400$
• C. $Rs.183$ and $Rs.1,600$
• D. $Rs.192$ and $Rs.1,800$

Answer 1

The correct option is D $Rs.192$ and $Rs.1,800$

Marked price of the article$=Rs.9600$

Discount$=20\%$

Price of the article after discount$=9600-\frac{20}{100}\times 9600$

$\Rightarrow 9600-1920=Rs.7680$

Tax paid by the shopkeeper$=\frac{10}{100}\times 7680=Rs.768$

Shopkeeper sell it at printed price then sell price$=Rs.9600$

$\therefore$Tax paid by the customer$=\frac{10}{100}\times 9600=Rs.960$

VAT=tax paid by the customes -Tax paid by the shopkeeper

$VAT=960-768=Rs.192$

Cost price of the article$=7680+120=Rs.7800$

Profit made by the shopkeeper$=9600-7800=Rs.1800$