A shopkeeper buys an article at a discount of 30% and pays sales tax at the rate of 6%. The shopkeeper sells the article to a customer at 6% . The shopkeeprer sells the article to a customer at 10% discount on the list price and charges sales tax at the same rate. If the list price of the article is ₹3000, find : (i) the price inclusive of sales tax paid by the shopkeeper. (ii) the price paid by the consumer . (iii) the VAT paid by the shopkeeper.
I want to know the solution
To solve this problem, we will follow the steps below:
Step 1: Calculate the price at which the shopkeeper bought the article after a 30% discount.
Step 2: Calculate the sales tax paid by the shopkeeper.
Step 3: Calculate the price at which the shopkeeper sold the article to the customer after a 10% discount.
Step 4: Calculate the sales tax paid by the customer.
Let's start with step 1:
Step 1: Calculate the price at which the shopkeeper bought the article after a 30% discount.
Discount % = 30%
List price = ₹3000
Discount amount = (Discount %/100) * List price
Discount amount = (30/100) * ₹3000
Discount amount = ₹900
Price after discount = List price - Discount amount
Price after discount = ₹3000 - ₹900
Price after discount = ₹2100
Step 2: Calculate the sales tax paid by the shopkeeper.
Sales tax rate = 6%
Price inclusive of sales tax = Price after discount + (Sales tax rate/100) * Price after discount
Price inclusive of sales tax = ₹2100 + (6/100) * ₹2100
Price inclusive of sales tax = ₹2100 + ₹126
Price inclusive of sales tax = ₹2226
So, the price inclusive of sales tax paid by the shopkeeper is ₹2226.
Now, let's move to step 3:
Step 3: Calculate the price at which the shopkeeper sold the article to the customer after a 10% discount.
Discount % = 10%
Price inclusive of sales tax = ₹2100 (from step 1)
Discount amount = (Discount %/100) * Price inclusive of sales tax
Discount amount = (10/100) * ₹2100
Discount amount = ₹210
Price to customer = Price inclusive of sales tax - Discount amount
Price to customer = ₹2100 - ₹210
Price to customer = ₹1890
So, the price paid by the consumer is ₹1890.
Finally, let's move to step 4:
Step 4: Calculate the sales tax paid by the customer.
Sales tax rate = 6%
Price paid by the consumer = ₹1890 (from step 3)
Sales tax paid by the customer = (Sales tax rate/100) * Price paid by the consumer
Sales tax paid by the customer = (6/100) * ₹1890
Sales tax paid by the customer = ₹113.4
So, the VAT paid by the shopkeeper is ₹113.4.
To summarize:
(i) The price inclusive of sales tax paid by the shopkeeper is ₹2226.
(ii) The price paid by the consumer is ₹1890.
(iii) The VAT paid by the shopkeeper is ₹113.4.