The owner of a departmental store purchased an article of F1500 at 4%

1.	The owner of a departmental store purchased an article of F1500 at 4% vat & set it at 1700 is the consumer at 4% vat. How much amount did the shopkeeper deposit to the government as vat?
Answer» The shopkeeper purchase price = M.P + 4% of M.P. = 1500 + 4% of 1500 = 1500 + (\(\frac{4}{100}\) × 1500 ) = 1500 = 1500 + 60 = 1560 Selling price of the shopkeeper = 1700 + 4% of 1700 = 1700 + (\(\frac{4}{100}\) × 1700) = 1700 + 68 = 1768. ∴ Total vat deposited to government = 1768 – 1560 = Rs 208.

The owner of a departmental store purchased an article of F1500 at 4% vat & set it at 1700 is the consumer at 4% vat. How much amount did the shopkeeper deposit to the government as vat?

Answer»

The shopkeeper purchase price = M.P + 4% of M.P.

= 1500 + 4% of 1500

= 1500 + (\(\frac{4}{100}\) × 1500 ) = 1500 = 1500 + 60 = 1560

Selling price of the shopkeeper = 1700 + 4% of 1700

= 1700 + (\(\frac{4}{100}\) × 1700) = 1700 + 68 = 1768.

∴ Total vat deposited to government

= 1768 – 1560 = Rs 208.