Question

Rakesh goes to a departmental store and purchases the following articles:
(i) biscuits and bakery products costing Rs 50, VAT @ 5%,
(ii) medicines 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

$$\begin{gathered} \left(\mathrm{i}\right)Costofb\mathrm{iscuits}\mathrm{and}\mathrm{bakery}\mathrm{products}=\mathrm{Rs}.50 \\ \mathrm{VAT}charged=5\% \\ \mathrm{So},\mathrm{VAT}=5\%\mathrm{of}\mathrm{Rs}.50=\frac{5}{100}\times 50=\mathrm{Rs}.2.50 \\ \mathrm{So},thetotal\mathrm{amount}\mathrm{paid}\mathrm{for}\mathrm{biscuits}\mathrm{and}\mathrm{bakery}\mathrm{products}=\mathrm{Rs}.\left(50+2.50\right)=\mathrm{Rs}.52.50 \\ \left(\mathrm{ii}\right)C\mathrm{ost}ofmedicine=\mathrm{Rs}.90 \\ \mathrm{VAT}charged=10\% \\ \mathrm{So},\mathrm{VAT}=10\%\mathrm{of}\mathrm{Rs}.90=\frac{10}{100}\times 90=\mathrm{Rs}.9 \\ \mathrm{So},thetotal\mathrm{amount}\mathrm{paid}\mathrm{for}\mathrm{medicines}=\mathrm{Rs}.\left(90+9\right)=\mathrm{Rs}.99 \\ \left(\mathrm{iii}\right)C\mathrm{ost}ofclothes=\mathrm{Rs}.400 \\ \mathrm{VAT}charged=1\% \\ \mathrm{So},\mathrm{VAT}=1\%\mathrm{of}\mathrm{Rs}.400=\frac{1}{100}\times 400=\mathrm{Rs}.4 \\ \mathrm{So},thetotal\mathrm{amount}\mathrm{paid}\mathrm{for}\mathrm{clothes}=\mathrm{Rs}.\left(400+4\right)=\mathrm{Rs}.404 \\ \left(\mathrm{iv}\right)C\mathrm{ost}of\cos metics=\mathrm{Rs}.150 \\ \mathrm{VAT}charged=10\% \\ \mathrm{So},\mathrm{VAT}=10\%\mathrm{of}\mathrm{Rs}.150=\frac{10}{100}\times 150=\mathrm{Rs}.15 \\ \mathrm{So},thetotal\mathrm{amount}\mathrm{paid}\mathrm{for}\mathrm{cosmetics}=\mathrm{Rs}.\left(150+15\right)=\mathrm{Rs}.165 \\ \mathrm{Hence},the\mathrm{total}\mathrm{amount}\mathrm{Rakesh}paidatthedepartmentalstore=\mathrm{Rs}.\left(52.50+99+404+165\right)=\mathrm{Rs}.720.50 \end{gathered}$$