Question

Rakesh goes to a departmental store and purchases the following articles:

(i) biscuits and bakery products costing Rs. 50, VAT @ 5%

(ii) medicine costing Rs.90, VAT @ 10%

(iii) clothes costing Rs. 400, VAT @ 1% and

(iv) cosmetics costing Rs. 150, VAT @ 10%.

Calculate the total amount to be paid by Rakesh to the store.

Answer 1

(i) Given,

Cost of biscuits and bakery products = Rs. 50

VAT = 5%

So, VAT = 5% of 50 = \(\frac{5}{100}\)x 50 = Rs. 2.50

Total amount paid for biscuits and bakery products = Rs.(50+2.50) =Rs.52.50

(ii) Given,

Cost of medicine = Rs.90

VAT = 10%

So, VAT = 10% of 90 = \(\frac{10}{100}\)x 90 = Rs. 9

Total amount paid for medicines = Rs.(90+9) =Rs.99

(iii) Given,

Cost of clothes = Rs.400

VAT = 1%

So, VAT = 1% of 400 = \(\frac{1}{100}\)x 400 = Rs. 4

Total amount paid for clothes = Rs.(400+4) = Rs.404

(iv) Given,

Cost of cosmetics = Rs.150

VAT = 10%

So, VAT = 10% of 150 = \(\frac{10}{100}\)x 150 = Rs. 15

Total amount paid for cosmetics = Rs(150+15) = Rs.165

Hence,

Total amount Rakesh paid at departmental store = Rs.(52.50+99+404+165) =Rs.720.50