A retailer buys an article from the wholesaler at GHC 80 and the wholesaler charges a sales tax at the1-arescribed rate of 8%. The retailer fixes the price at GHC 100 and charges sales tax at the same rate.Apply value added tax system of sales tax calculation to answer the following questions.(i)What is the price that a consumer has to pay to buy the article?(ii)Find the input tax and output tax for the retailer.(iii)How much VAT does the retailer pay to the government?2.A shopkeeper sells an article at its marked price GHC 7500 and charges sales-tax at the rate of 12%from the customer. If the shopkeeper pays a VAT of GHC 180, calculate the price inclusive of taxpaid by the shopkeeper.3.A manufacturer printed the price of his goods as GHC120 per article. He allowed a discount of 30%to the wholesaler who in his turn allowed a discount of 20% on the printed price to the retailer. If theprescribed rate of sales tax on the goods is 10% and the retailer sells it to the consumer at the printedprice then find the value added tax paid by the wholesaler and the retailer.

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A retailer buys an article from the wholesaler at GHC 80 and the wholesaler charges a sales tax at the arescribed rate of 8%. The retailer fixes the price at GHC 100 and charges sales tax at the same rate. Apply value added tax system of sales tax calculation to answer the following questions. (i) What is the price that a consumer has to pay to buy the article? (ii) Find the input tax and output tax for the retailer. (iii) How much VAT does the retailer pay to the government'?

A retailer buys an article from the wholesaler at GHC 80 and the wholesaler charges a sales tax at the arescribed rate of 8%. The retailer fixes the price at GHC 100 and charges sales tax at the same rate. Apply value added tax system of sales tax calculation to answer the following questions. (i) What is the price that a consumer has to pay to buy the article? (ii) Find the input tax and output tax for the retailer. (iii) How much VAT does the retailer pay to the government'?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 2PA: Stork Enterprises delivers care packages for special occasions. They charge $45 for a small package,...

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