Question

Q

Answer 1

Marked price (M.P.) of an article = Rs. 6,000

For dealer,

C.P. = Rs. 6,000 - 30% of Rs. 6,000

= Rs. 6,000 - `30/100` × Rs. 6,000
= Rs. 4,200

S.P. = Rs. 6,000 - 100% of Rs. 6,000

= Rs. 6,000 - `10/100` × Rs. 6,000
= Rs. 5,400

(i) C.P. for shopkeeper = Rs. 5,400
Thus, price paid by the shopkeeper including the tax
= Rs. 5,400 + 6% of Rs. 5,400
= Rs. 5,724

(ii) VAT paid by the dealer = Tax on S.P. - Tax on C.P.
= 6% of Rs. 5,400 - 6% of Rs. 4,200
= Rs. 324 - Rs. 252
= Rs. 72