Gst (1 Viewer)

[kylie.110292]

sorry if it has already been posted but i was doing a practice test and a question about GST came up, how do u find the original price of an item when the 10% has already been calculated into the price?

Thanks heaps

 

[kylie.110292]

Well thats wat i originally did but the answer was different to wat i got, but perhaps the answer was wrong

 

[ashllis92]

Well, the final price is
F = 1.10x
so to get the original price, x,
F/1.10 = x
Hope it helps

 

[kylie.110292]

thanks heaps i couldnt believe that i had forgotten such a simple thing, the answer worked out to be wat they said was the amount which was different to my first

 

[Kat92]

sorry if it has already been posted but i was doing a practice test and a question about GST came up, how do u find the original price of an item when the 10% has already been calculated into the price?

Thanks heaps

Purchase Price= Cost price (100%) + GST (10%)
110%= $....
1%= $.... / ....
= $.....
Therfore= $.....

 

[PC]

Kat's answer is the best.

A quick method which only works for a GST of 10% is to divide by 11. This will give the amount of the GST component, then you can subtract this from the selling price to get the cost price.