Exercise : Chapter 1 GST Test MCQ Questions and Answers
1.
A shopkeeper bought a washing machine at a discount of 20% from a wholesaler, the printed price of the washing machine being ₹ 18000. The shopkeeper sells it to a consumer at a discount of 10% on the printed price. If the rate of sales tax is 8%, find:
(i) the VAT paid by the shopkeeper. .
(ii) the total amount that the consumer pays for the washing machine.
Solution :
(i) S.P. of washing machine
= [1−(10/100)] x ₹18000
= 90/100 x 18000 = Rs. 16200
Sales tax = 8% of Rs. 16200
= 8/100 x 16200 = Rs. 1296
Printed price = Rs. 18000
Price paid by shopkeeper
= [1 - (20/100)] x 18000
= 80/100 x 18000
= Rs. 14400
Sale tax paid by shopkeeper
= 8/100 x 14400 = Rs. 1152
(i) ∴ VAT paid by shopkeeper
= Tax charged - Tax paid
= Rs. 1296 - Rs. 1152 = Rs. 144
(ii) Price paid by customer
= Rs. 16200 + Rs. 1296 = Rs. 17496
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2.
A manufacturing company sold an article to its distributor for ₹22000 including VAT. The distributor sold the article to a dealer for ₹22000 excluding tax and the dealer sold it to a consumer for ₹25000 plus tax (under VAT). If the rate of sales tax (under VAT) at each stage is 10%, find :
(i) the sale price of the article for the manufacturing company.
(ii) the amount of VAT paid by the dealer.
Solution :
S.P. of an article for a manufacturer = ₹22000 including VAT
C.P. for the distributor = ₹22000
Rate of VAT = 10%
S.P. for the distributor of ₹22000 excluding VAT
S.P. for the consumer = Rs. 25000 + Tax(VAT)
= Rs. 25000 + 10% of Rs. 25000
= Rs. 25000 + Rs. 2500 = Rs. 27500
(i) Sales price for the manufacturer
= Rs. 22000 x [100/(100+10)] = Rs. 22000 x 100/110
= Rs. 20000
(ii) Amount of VAT paid by the dealer
= Rs. 25000 x (10/100) = Rs. 2500
VAT already paid by manufacturer
= Rs. 22000 x (10/100) = Rs. 2200
∴ Net VAT to be paid = Rs. 2500 - Rs. 2200 = Rs. 300
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3. The marked price of an article is ₹7500. A shopkeeper sells the article to a consumer at the marked prices and charges sales tax at . the rate of 7%. If the shopkeeper pays a VAT of ₹105, find the price inclusive of sales tax of the article which the shopkeeper paid to the wholesaler.
Solution :
Marked price of an article = ₹7500
Rate of S.T. = 7%
∴ Total tax = Rs. [(7500 x 7)/100] = Rs. 525
and VAT paid by the shopkeeper = Rs. 105
Difference of tax (VAT) = Rs. 525 - Rs. 105 = Rs. 420
∴ Tax = Rs. 420 and rate = 7%
∴ C.P. of the shopkeeper = Rs. (420 x 100)/7
= Rs. 6000
and total C.P. paid by the shopkeeper
= Rs. 6000 + Rs. 420 = Rs. 6420
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4. 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 consumer 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 the price inclusive of sales tax paid by the shopkeeper.
Solution :
List price of an article = ₹3000
Rate of discount = 30%
and rate of S.T. = 6%
Total discount = Rs. 3000 x (30/100) = Rs. 900
∴ S.P. of manufactures of
C.P. of the shopkeeper = Rs. 3000 - Rs. 900
= Rs. 2100
S.T. = Rs. 2100 x (6/100) = Rs. 126
Rebate given to consumer = 10%
and C.P. of the consumer
= Rs. [3000 x (100-10)]/100
= Rs. 3000 x 90/100 = Rs. 2700
(i) S.T. paid by shopkeeper = Rs. 126
Total cost price of the shopkeeper
= Rs. 2100 + 126 = Rs. 2226
(i) S.T. paid by shopkeeper = Rs. 126
Total cost price of the shopkeeper
= Rs. 2100 + Rs. 126 = Rs. 2226
(ii) S.T. for consumer = Rs. 2700 x (6/100) = Rs. 162
∴ Total cost price paid by the consumer
= Rs. 27000 + Rs. 162 = Rs. 2862
(iii) VAT paid by the shopkeeper
= Rs. 162 - Rs. 126 = Rs. 36
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5. Mukerjee purchased a movie camera for ₹27468. which includes 10% rebate on the list price and then 9% sales tax (under VAT) on the remaining price. Find the list price of the movie camera.
Solution :
Let list price of the movie camera = X
Rebate = 10%
Price after rebate = X x [(100-10)/100] = X x 90/100
Sales tax = 9%
Sales Price = (90/100) X x [(100+9)/100]
=(90/100) X x (109/100) = (981/1000) X
∴ (981/1000) X = Rs. 27468
⇒ X = (27468 x 1000)/981
∴ X = 28 x 1000 = Rs. 28000
∴ List price of movie camera = Rs. 28000
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6.
A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. If the buyer pays ₹451.44 for the article inclusive of sales tax (under VAT) at 8%, find :
(i) the printed price of the article
(ii) the profit percentage of the retailer.
Solution :
(i) Let the printed price of the article = ₹100
Then, retailer’s cost price
= ₹100-₹15 = ₹85
Now, marked price for the retailer
= ₹100 + ₹10 = ₹110
Rate of discount allowed = 5%
∴ Sale price = Rs. [110 x (100 - 5)]/100
= Rs. (110 x 95)/100
= Rs. 1045/10
∴ Sale price including sales tax
= Rs. (1045/10) x [(100 + 8)/100]
= Rs. (1045 x 108)/1000
Now, if the buyers pays Rs. (1045 x 108)/1000
then printed price = Rs. 100
and if buyer pays Rs. 451.44, then printed price
= Rs. (100 x 451.44 x 1000)/(1045 x 105)
= Rs. 400
∴ Printed price = Rs. 400
(ii) Now, gain of the retailer = S.P. - C.P.
= Rs. (1045/10) - (85-1)
= (1045 - 850)/10 = Rs. 195/10
∴ Gain percent = (Total gain x 100)/C.P.
= (195 x 100)/(10 x 85)
= 390/17
= 22(16/17)%
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