Question

Fill in the blanks. 

(i) The discount is reckoned on the ____ price. 

(ii) Gain or loss is always reckoned on the ______ 

(iii) SP = (Marked price) - (_____) 

(iv) VAT is charged on the _______ of the article.

Answer 1

(i) Marked 

Selling Price = Marked Price - Discount

(ii) Cost price 

If seller sells any item greater than Cost Price, it is said to have a Gain. 

Gain = SP - CP 

If seller sells any item less than Cost Price, it is said to have a Loss. 

Loss = CP – SP

(iii) Discount 

SP is the amount that we pay for an article when purchased. 

Marked Price is the price that is without any discount. 

Discount is amount which we get as a rebate for purchasing the article. 

(iv) Selling price 

VAT is always charged on the Selling Price of an article and not on the MRP.