Question

A manufacturer in delhi manufactures a machine and marks it at rupees 60000.he sells the machine to a wholesaler(in patna)at a discount of 20% .the wholesaler sells the machine to a dealer (in agra) at a discount of 10% on the marked price .If the rate of gst is28%,find the tax paid by the wholesaler to the central government.​

Answer 1

Hint: The amount paid to purchase an article or the price at which an article is made is known as its cost price and the price at which an article is sold is known as its selling price. A discount is a deduction from the usual price or marked price of something. To discount means to deduct an amount from the actual price. Hence, to solve this question we must apply all the formulas based on the data asked.
Formula used:
 \[SP = MP \times \dfrac{{100 - discount}}{{100}}\]
SP is selling price
MP is marked price
Tax paid = tax collected – tax given

Complete step-by-step answer:
Let us write the given data:
Marked price: Rs 60,000
Manufacturer sells the machine to a Wholesaler at a discount of 20%
Wholesalers sell at a discount of 10%.
Rate of GST is 28% find it of 20%
The wholesaler sells the machine to the Central Government and the total cost paid is 10%.
Hence,
Marked price (MP): Rs 60,000
Selling price of the machine for the manufacturer is:
 \[SP = MP \times \dfrac{{100 - discount}}{{100}}\]
= \[60000 \times \dfrac{{\left( {100 - 20} \right)}}{{100}}\]
= \[60000 \times \dfrac{{80}}{{100}}\]
Hence, the cost price of the machine for the wholesaler is:
= Rs. \[48,000\]
Selling price of the machine for the wholesaler is:
= \[48,000 \times \dfrac{{\left( {100 - 10} \right)}}{{100}}\]
= \[48,000 \times \dfrac{{90}}{{100}}\]
Hence, the cost price of the machine for the dealer is:
= Rs. \[43,200\]
Tax paid by the wholesaler, if the rate of GST is 28%: tax collected - tax given
= \[\dfrac{{28}}{{100}}\left( {48,000 - 43,200} \right)\]
= \[\dfrac{{28}}{{100}} \times 4800\]
Hence, Tax paid by the wholesaler is
= \[1,344\]
Now, we need to find the total cost paid by the dealer: cost price + 28% of cost price of the machine for the dealer
= \[43,200 + \dfrac{{28}}{{100}} \times 43,200\]
= \[43,200 + 12,096\]
= Rs. \[55,296\]
Therefore, the total cost paid by the dealer is Rs. \[55,296\] .

Note: The key point to solve this question, we must know how to convert given percentage value to decimal value and all the basic knowledge on the terms mentioned selling price, cost price, discount ratio etc. and must know all the formulas related with the Selling price (SP), Cost price (CP) and discount. Hence, by finding all these values we can find the tax paid.