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

\[\text { (i) Cost of biscuits and bakery products = Rs  } . 50\]

\[\text { VAT charged = 5 % } \]

\[\text { So, VAT = 5 % of Rs . 50 } = \frac{5}{100} \times 50 = Rs . 2 . 50\]

\[\text { So, the total amount paid for biscuits and bakery products = Rs  }. \left( 50 + 2 . 50 \right) = Rs . 52 . 50\]

\[\text { (ii) Cost of medicine = Rs } . 90\]

\[\text { VAT charged = 10 % } \]

\[\text { So, VAT = 10 % of Rs . 90 } = \frac{10}{100} \times 90 = Rs . 9\]

\[\text { So, the total amount paid for medicines = Rs } . \left( 90 + 9 \right) = Rs . 99\]

\[\text { (iii) Cost of clothes = Rs } . 400\]

\[\text { VAT charged = 1 %  }\]

\[\text { So, VAT = 1 % of Rs . 400 } = \frac{1}{100} \times 400 = Rs . 4\]

\[\text { So, the total amount paid for clothes = Rs } . \left( 400 + 4 \right) = Rs . 404\]

\[\text { (iv) Cost of \cosmetics = Rs  }. 150\]

\[\text { VAT charged = 10 %  }\]

\[\text { So, VAT = 10 % of Rs . 150 } = \frac{10}{100} \times 150 = Rs . 15\]

\[\text { So, the total amount paid for cosmetics = Rs } . \left( 150 + 15 \right) = Rs . 165\]

\[\text { Hence, the total amount Rakesh paid at the departmental store = Rs } . \left( 52 . 50 + 99 + 404 + 165 \right) = Rs . 720 . 50\]