Question

A shopkeeper bought a washing machine at a discount of 20% from the wholesaler, the printed price of the washing machine being Rs. 1800. The shopkeeper sells it to a customer at a discount of 10% on the printed price. If the rate of GST is 28% find:
i) The GST paid by the shopkeeper
ii) The total amount that the customer pays for the washing machine.

Answer 1

Hint: We will first find the price of the washing machine after discount and then calculate the GST on that price charged to the shopkeeper. Next, we will find the discounted price of the washing machine and then GST charged by the shopkeeper. Then, calculate the GST paid by the shopkeeper by subtracting the GST by the shopkeeper from the GST charged by the shopkeeper. And the price that the customer paid is determined by adding the price of the washing machine and tax charged by the shopkeeper.

Complete step-by-step answer:
We are given that the printed price of washing machine is Rs. 18,000.
The shopkeeper bought it a discount of 20%,
That is, the price left of washing machine is $\left( {100 - 20} \right)\% = 80\% $
It implies the price of washing machine is 80% of Rs. 18,000.
$\Rightarrow$ $\dfrac{{80}}{{100}}\left( {18,000} \right) = 14,400$
But, customers also paid GST of 28% on the price of the washing machine.
That is the customer paid 28% of 14,400
$\Rightarrow$ $\dfrac{{28}}{{100}}\left( {14,400} \right) = 4,032$
Then, the shopkeeper was charged Rs. 4032 as GST.
Next, we are given that the shopkeeper sells it to the customer at 10% discount on printed price.
Now, the price of the washing machine for the customer will be 90% of 18,000
$\Rightarrow$ $\dfrac{{90}}{{100}}\left( {18,000} \right) = 16,200$
Also, the customer pays 28% GST on the price of the washing machine.
Therefore, the GST charged by the shopkeeper
$\Rightarrow$ $\dfrac{{28}}{{100}}\left( {162,00} \right) = 4,536$
Now, in part (i) we have to tell the GST paid by the shopkeeper, which will be calculated by subtracting the GST charged to the shopkeeper from the GST charged by the shopkeeper.
$\Rightarrow$ $4536 - 4032 = 504$
Therefore, the tax paid the shopkeeper is Rs. 504
In part (ii) we will calculate the price paid by the customer by adding the price of the washing machine and tax charged by the shopkeeper.
$\Rightarrow$ $16,200 + 4536 = 20,736$
Hence, the amount paid by the customer is Rs, 20736.

Note: We subtract the discounted amount whereas tax is added to the price of an article. Here, we have calculated the discounted price directly, but we can also do it by finding the amount of discount on the washing machine and then subtracting it from the price of the washing machine.