Q1. A shopkeeper buys a TV at a discount of 20% from the wholesaler, the marked
price of TV being $1600 and the rate of sales tax is 6%. The shopkeeper sells it to the
buyer at the printed price and charges tax at the same rate. Find:
(i) The price at which the TV can be bought.
(ii) The Value Added Tax paid by the shopkeeper.
Q2. The catalogue price of a sports car is $ 45000. The dealer gave a discount of 7% on
the marked price and a further off-season discount of 4% on the balance. However,
sales tax at 8% is charged on the remaining amount. Find:
(i) The sales tax paid by customer
(ii) The final price paid by customer for sports car
Q3. A shopkeeper buys an article whose list price is $ 800 at some rate of discount from
a wholesaler. He sells the article to a consumer at the list price and charges sales tax at
the prescribed rate of 7.5%. If the shopkeeper has to pay a VAT of $6 , find the rate of
discount at which he bought the article from the wholesaler.
Q4. A truck manufacturing company sells big truck to dealer X for $50000. Dealer X
sells it to dealer Y at a profit of 8%. Dealer Y then sells it to customer at a profit of
10%.If the rate of VAT is 12.5%, what is the amount of tax (under VAT) received by
the state government on the sale of this car?
Q5. A manufacturer produces an article which costs him $500. He sells it to a
wholesaler at a price of $500 and wholesaler sells it to retailer at a price of $600. The
retailer sells it to the customer at a price of $800. If the sales tax charged is 5%. Find:
(i) the tax charged under VAT by manufacturer
(ii) the tax charged under VAT by wholesaler
(iii) the tax charged under VAT by retailer.
(iv) the tax paid by the customer.
Q6. A shopkeeper buys an article at a rebate of 30% on the listed price. He spends $40
on transportation of the article. After charging sales tax at the rate of 7% on the
printed price, he sells the article for $856.Find his profit percentage?
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Q7.A manufacturer sells a car to a distributor for $22000 including sales tax. The
distributor sells it to wholesaler for $ 21750 excluding tax and wholesaler sells it to a
customer for $23400 plus tax. If the rate of VAT is 10%, find:
(i)Cost price of car for the customer.
(ii) The amount of tax received by the government.
Q8.The price of a car inclusive of sales tax of 9% is $13407. Find its marked price. If
the sales tax is increased to 13%, how much more does the customer has to pay for
the car?
Q9. Peter purchased an article for $3600 and sells it to James for $4800. James, in
turn, sells the article to Patrick for $5500. If the VAT rate is 10%, find:
(i)the VAT levied on Peter.
(ii) the VAT levied on James.
Q10.The manufacturer sold an article to a wholesaler for $700. The wholesaler sold it to
a trader at a profit of $100. If the trader sold it to the customer at a profit of $150,
find:
(i) the total VAT in this transaction if rate of VAT is 8%.
(ii) the total amount that the customer needs to pay for this article.
Q11. If the rate of VAT is decreased from 9% to 8% for an article, a customer has to
pay $55 less for it. Find the list price of the article?
Q12.The quoted price of an article is $500. Andrew marks up the price and sells it to
Jonty at $700 which includes a sales tax of 5% on the price asked for. By what % did
Andrew marked up the quoted price? If Jonty sells the article to Jack at $800 plus VAT.
Find the VAT levied on Jack, if the rate of VAT is 10%?
Q13. A retailer buys an article at a discount of 8% on the marked price from the
wholesaler. The retailer marks up the list price by 10%. A customer pays $525 to
purchase it after paying a sales tax at the rate of 5% on the price asked for. Find:
(i) the profit of the retailer.
(ii) the marked price of the retailer
Q14. A shopkeeper marks up the listed price of a TV by 10%, but allows a discount of
8% on the raised marked price. He sells it to a customer at $300 which is inclusive of
5% sales tax. Find:
(i) the original list price of TV.
(ii) the profit of the shopkeeper.
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Q15. In an electronics shop, the list price of a camera is $ 350 and that of a DVD player
is $ 100. During the Christmas season, the list price is increased by 8% due to high
demand of electronic items. A customer wants to purchase both camera and DVD player
and on request, shopkeeper agreed to give him discount of 5%, however the customer
needs to pay 6% sales tax extra. Find:
(i)the marked up list price of camera.
(ii) the marked up list price DVD player.
(iii) the final amount that customer has to pay to purchase both camera and DVD
player.
(iv) the total sales tax paid by the customer.
Q16.Assume that ‘A’ is a manufacturer, ‘B’ is a sole distributor, ‘C’ is a wholesaler, ‘D’ is
retailer and all of them live in the same state. ‘A’ manufactures bikes at a cost of
$10000. He sells it to ‘B’, and ‘B’ sells it to ‘C’. ‘C’ sells it to ‘D’. Also assuming that the
tax rate is 8% and profit is $ 500 at every stage of the selling chain. Find:(i) the total
amount of VAT paid in this selling chain.
(ii) the selling price of ‘D’.
Q17.Assume that ‘A’ is a manufacturer, ‘B’ is a sole distributor, ‘C’ is a wholesaler, ‘D’ is
retailer and all of them live in the same state. The manufacturer ‘A’ produces TV at a
cost of $300. He sells it to ‘B’, and ‘B’ sells it to ‘C’. ‘C’ sells it to ‘D’. Also assuming that
the tax rate is 12% and profit is $ 50 at every stage of the selling chain. Find:
(i) the total amount of VAT paid.
(ii) the amount the buyer will have to pay to purchase TV.
Q18. Assume that ‘A’ is a manufacturer, ‘B’ is a wholesaler, ‘C’ is a retailer and all of
them live in the same state. The manufacturer ‘A’ produces washing machine at a cost
of $1250. He sells it to ‘B’, and ‘B’ sells it to ‘C’. The tax rate is 11.5% and profit is $
205 at every stage of the selling chain. Find:
(i) the total amount of VAT.
(ii) the amount the buyer will have to pay.
Q19. ‘A’ is a manufacturer which produces an article for $216. ‘B’ is a wholesaler and ‘C’
is a retailer and all of them live in the same state. ‘A’ sells article to ‘B’ and ‘B’ sells it to
‘C’. The tax rate is 10% and profit is $ 20 at each stage. Find:
(i) the total amount of VAT paid.
(ii)Cost price of ‘B’.
(iii) Cost price of ‘C’.
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Q20. ‘A’ is a manufacturer, ‘B’ is a sole distributor, ‘C’ is a wholesaler and ‘D’ is a
retailer and all of them live in the same state where the rate of VAT is 12.5%. the cost
price of A’s article is $104. ‘A’ sells it to ‘B’, ‘B’ sells it to ‘C’ and ‘C’ sells it to D. The
profit is $ 10 at each stage. Find:
(i) the amount of VAT paid.
(ii) Cost price of ‘C’.
(iii) Selling price of ‘D’.
Answers:
A1. (i) $ 1696
(ii) $ 19.20
A2. (i) $ 3214.08
(ii) $ 43390.08
A3. 10%
A4. $ 7425
A5.(i) $25 (ii) $5 (iii)$10
(iv)
$40
A6. 33.33%
A7. (i) $25740 (ii) $6515
A8. $12300, $492
A9. $120, $70
A10. (i) $76
(ii) $970
A11. $ 5500
A12. 33%, $10
A13. (i) $45.46 (ii) $500
A14. (i) $282.33 (ii) $14.29
A15. (i) $378 (ii) $108
A16. (i) $960
(iii)$489.40 (iv)$27.70
(ii) $12960
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A17. (i) $60 (ii) $560
A18. (i) $214.475
(ii) $2079.475
A19. (i) $27.60
(ii) $236
A20. (i) $18 (ii) $124
(iii)
$256
(iii) $162
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