Exercise 7.

1. Find the buying price of each of the following when 5% S.T. is

added on the purchase of
(i) A towel of ₹ 50
(ii) 5 kg of flour at ₹ 15 per kg.

O T IS
Solution:
(i) It is given that
N A D
CO N
S.T. = 5%
O UC AA
T IO
PY
Cost of towel = ₹ 50
We know that
ED PR

×
Total S.T. = = ₹ 2.50

So the buying price = 50 + 2.50 = ₹ 52.50

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(ii) We know that

C.P. of 5 kg of flour at the rate of ₹ 15 per kg = 15 × 5 = ₹ 75
Rate of S.T. = 5%
Here
×
Total tax =
D

So we get
= 375/100
= ₹ 3.75
So the total price of the flour = 75 + 3.75 = ₹ 8.75
2. If 8% of VAT is included in the prices, find the original price of
(i) A TV bought for ₹ 13500
(ii) A shampoo bottle bought for ₹ 180.
Solution:
(i) It is given that
Total price of TV including VAT = ₹ 13500

O T IS
Rate of VAT = 8%

N A D
CO N
We know that
×
O UC AA
T IO
Original price of TV =

PY
By further calculation
×
ED PR

= ₹ 12500
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(ii) It is given that

Total cost of shampoo bottle including VAT = ₹ 180
Rate of VAT = 8%
We know that
×
Original price of shampoo =
D

By further calculation
×
=

So we get

= = ₹ 166.67
3. Utkarsh bought an AC for ₹ 34992 including a VAT of 8%. Find
the price of AC before VAT was added.
Solution:
It is given that
Cost of AC including VAT = ₹ 34992
Rate of VAT charged = 8%

O T IS
We know that
×
Original price of AC =
N A D
CO N
O UC AA
T IO
By further calculation

PY
×
=
ED PR

= ₹ 32400

4. Gaurav bought a shirt for ₹1296 including VAT. If the original

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price of the shirt is ₹ 1200, find the rate of VAT.

Solution:
It is given that
Cost of shirt including VAT = ₹ 1296
Original price of shirt = ₹ 1200
D

We know that
Amount of VAT = 1296 – 1200 = ₹ 96
Here
×
Rate of VAT =
. .

Substituting the values

 ×
=

=8%

5. Anjana buys a purse for ₹ 523.80 including 8% VAT. Find the new
selling price of the purse if VAT increases to 10%.
Solution:

O T IS
It is given that

N A D
CO N
Total C.P. of purse including VAT = ₹ 523.80
O UC AA
Rate of VAT = 8%

T IO
PY
We know that
. ×
Actual cost of the purse =
ED PR

By further calculation
. ×
©

= ₹ 485
Here
New rate of VAT = 10%

Amount of VAT = 485 ×

D

So we get

= ₹ 48.50
So the total cost of the purse = 485 + 48.50 = ₹ 535.50
6. A wall hanging is marked for ₹ 4800. The shopkeeper offers 10%
discount on it. If VAT is received 8% from the customer, find the
amount paid by the customer to purchase the wall hanging.
Solution:
It is given that
Marked price of wall hanging = ₹ 4800
Discount offered = 10%

O T IS
We know that
N A D
CO N
–
Net sale price = 4800 ×
O UC AA
T IO
PY
By further calculation
×
=
ED PR

= ₹ 4320
Here
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Rate of VAT charged = 8%

So the sale price including VAT = 4320 ×

By further calculation
×
=
D

= ₹ 4665.60

7. Amit goes to a shop to buy a washing machine. The marked price

of the washing machine is ₹ 10900 excluding 9% VAT. Amit bargains
with the shopkeeper and convinces him for ₹ 10900 including VAT as
the final cost of the washing machine. Find the amount reduced by
the shopkeeper.
Solution:
It is given that
M.P. of washing machine = ₹ 10900
Rate of VAT = 9%

O T IS
Consider ₹ x as the reduced price of machine
N A D
CO N
We know that
O UC AA
T IO
!

PY
VAT at the rate of 9% = × = ₹
! !
So the amount paid = + =
ED PR

By equating the values

!
= 10900
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By further calculation
×
x=

x = 10000
Amount reduced by the shopkeeper = 10900 – 10000
D

= ₹ 900
Therefore, the amount reduced by the shopkeeper is ₹ 900.