What are Marked Price, Discount and VAT?
Marked Price
The price which is listed or printed on
the item or article for sell is called the marked
price or labelled price of the item. It is denoted by MP.
Discount
When a shopkeeper reduces the marked
price of any article and sells it to costumers, the reduced amount is called discount. Discount is usually given as
a certain percent of marked price.
Thus,
VAT ( Value Added Tax)
VAT or Value Added Tax is a government tax levied on the cost of certain goods or services. The VAT rate is usually in the percentage and is decided by the government.
The rate of VAT varies
from country to country and there are certain goods and services which are free
from VAT. For example, educational items, social welfare services, etc. are
VAT-free good and services.
VAT is levied on actual selling price. So,
List of formulae on MP, Discount, SP and VAT
Worked Out Examples
Example 1: The marked price of a book is
Rs. 200. If a discount of 10% is offered. Find the selling price of the book.
Solution: Here,
∴ Selling price of the book = Rs. 180.
Example 2: A shopkeeper allowed 10%
discount in a watch of marked price of Rs. 600. If he got 8% profit, find the
cost price of the watch.
Solution: Here,
∴ The cost price of the watch = Rs. 500.
Example 3: The marked price of a computer
is Rs. 30000. If it is sold after 20% discount and then 30% VAT is levied in
it. Find the price of computer including VAT.
Solution: Here,
∴ The price of computer including VAT = Rs. 27120.
Example 4: After allowing 15% discount on
the marked price of a radio 13% VAT is levied, then the cost of radio becomes
Rs. 1997. Find the marked price of the radio.
Solution: Here,
∴ The marked price of the radio = Rs. 2080.
Example 5: After allowing 20% discount on
the marked price and then levying 10% VAT, a radio was sold. If buyer had paid
Rs. 320 for VAT, how much was the discount?
Solution: Here,
∴ Rs. 800 was the discount amount.
Do you have any question regarding Marked Price, Discount and VAT?
You can comment your
questions or problems here.
The lebelled price of a radio is Rs 5210. If the shopkeeper allows 10% discount and adds 10 % VAT then,
ReplyDelete(i) How much will a customer pay for the radio
(ii) Find the difference between marked price and selling price
Here is the solution to your problems,
Delete[image src="https://1.bp.blogspot.com/-OFNH4wAyeUI/YBANRVpvq_I/AAAAAAAAHaE/G_dqWX5adygxeMDgK3TYxIot-3upgCgbACLcBGAsYHQ/s598/comment%2B-%2Bsolution%2B1.png"/]
Comment here, if you have more problems regarding marked price, discount and vat.
Reasonableness: While protection rates have expanded at twofold digit rates in the course of recent years, discount card suppliers have kept their rates for all intents and purposes unaltered. Coupons
ReplyDeletethe mp of a laptop is rs.75000. after allowing a certain percent of discount and including 15%VAT, the laptop is sold at rs.73312.5.calculate the discount percent and VAT amount
ReplyDeleteHere is the solution to your problems,
Delete[image src="https://1.bp.blogspot.com/-6GL598P5ZEM/YGXk2d9pkKI/AAAAAAAAIBQ/pQCjpL-oW14WbBHydF4iGblUFzhxiUe3wCLcBGAsYHQ/s16000/Comment%2BSolution%2B2.png"/]
Comment here if you have more problems regarding marked price, discount and vat.
the marked price of an article is rs 10000 and the shopkeeper allows some percent discount and adding some percent vat which is 3% more than the discount percent. if the customer pays rs. 10170 for the article then find discount percent
ReplyDeleteHere is the solution to your problems,
Delete[image src=" https://1.bp.blogspot.com/-3jeSIOW6Juo/YHW7YahTdWI/AAAAAAAAIEg/JRuYw3UvG586bm6rLFCYK7IQSmr6cAcvQCLcBGAsYHQ/s16000/comment%2Bsolution%2B3.png "/]
Comment here if you have more problems regarding the marked price, discount and vat.