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) We have,

Cost of biscuits and bakery products = Rs 50

VAT = 5%

So, rate of VAT = 5% of 50 = 5/100 × 50 = Rs 2.50

Amount paid for biscuits and bakery products = Rs (50+2.50) =Rs 52.50

(ii) We have,

Cost of medicine = Rs 90

VAT = 10%

So, rate of VAT = 10% of 90 = 10/100 × 90 = Rs 9

Amount paid for medicines = Rs (90+9) =Rs 99

(iii) We have,

Cost of clothes = Rs 400

VAT = 1%

So, rate of VAT = 1% of 400 = 1/100 × 400 = Rs 4

Amount paid for clothes = Rs (400+4) = Rs 404

(iv) We have,

Cost of cosmetics = Rs 150

VAT = 10%

So, rate of VAT = 10% of 150 = 10/100 × 150 = Rs 15

Amount paid for the cosmetics is = Rs (150+15) = Rs 165

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