About this quiz
Tax, VAT, Commission and Depreciation: Arithmetic with Solved Examples
This Lok Sewa practice set has 55 multiple-choice questions (Subject: Maths and IQ · For: Kharidar · Level: Medium). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.
Study list: all 55 questions with answers and explanations
VAT at 13% on Rs 2,000 is:
- A) Rs 200
- B) Rs 260 ✔
- C) Rs 300
- D) Rs 130
Why: 2,000 × 13 ÷ 100 = 260.
Price of a Rs 2,000 item including 13% VAT:
- A) Rs 2,130
- B) Rs 2,200
- C) Rs 2,260 ✔
- D) Rs 2,300
Why: 2,000 × 1.13 = 2,260.
A bill including 13% VAT is Rs 1,130. Price before VAT?
- A) Rs 983
- B) Rs 1,000 ✔
- C) Rs 1,017
- D) Rs 1,100
Why: 1,130 ÷ 1.13 = 1,000.
Commission at 5% on sales of Rs 80,000:
- A) Rs 400
- B) Rs 4,000 ✔
- C) Rs 5,000
- D) Rs 8,000
Why: 80,000 × 5 ÷ 100 = 4,000.
A salesman earns Rs 3,000 commission at 4%. His sales were:
- A) Rs 12,000
- B) Rs 30,000
- C) Rs 75,000 ✔
- D) Rs 1,20,000
Why: 3,000 × 100 ÷ 4 = 75,000.
A Rs 50,000 machine depreciates 10% a year (reducing). Value after 2 years:
- A) Rs 40,000
- B) Rs 40,500 ✔
- C) Rs 45,000
- D) Rs 41,000
Why: 50,000 × 0.9 × 0.9 = 40,500.
Value of the same machine after 1 year:
- A) Rs 45,000 ✔
- B) Rs 49,000
- C) Rs 40,500
- D) Rs 55,000
Why: 50,000 × 0.9 = 45,000.
Cost Rs 1,00,000, scrap Rs 10,000, life 5 years. Straight-line depreciation per year:
- A) Rs 20,000
- B) Rs 18,000 ✔
- C) Rs 22,000
- D) Rs 9,000
Why: 90,000 ÷ 5 = 18,000.
Total depreciation in 2 years on Rs 50,000 at 10% reducing:
- A) Rs 10,000
- B) Rs 9,500 ✔
- C) Rs 9,000
- D) Rs 5,000
Why: 50,000 − 40,500 = 9,500.
Marked price Rs 1,000, 10% discount, then 13% VAT. Final price:
- A) Rs 1,017 ✔
- B) Rs 1,030
- C) Rs 1,130
- D) Rs 900
Why: 900 × 1.13 = 1,017.
Tax at 1% on Rs 5,00,000:
- A) Rs 500
- B) Rs 5,000 ✔
- C) Rs 50,000
- D) Rs 50
Why: 5,00,000 × 1 ÷ 100 = 5,000.
A value falls from Rs 80,000 to Rs 72,000 in one year. Rate of depreciation:
- A) 8%
- B) 10% ✔
- C) 12%
- D) 9%
Why: 8,000 ÷ 80,000 = 10%.
Tax at 0.5% on property worth Rs 20,00,000:
- A) Rs 1,000
- B) Rs 10,000 ✔
- C) Rs 20,000
- D) Rs 5,000
Why: 20,00,000 × 0.5 ÷ 100 = 10,000.
Commission at 2.5% on Rs 1,20,000:
- A) Rs 2,500
- B) Rs 3,000 ✔
- C) Rs 3,500
- D) Rs 1,200
Why: 1,20,000 × 2.5 ÷ 100 = 3,000.
A price including VAT is Rs 5,650. The VAT amount is:
- A) Rs 565
- B) Rs 650 ✔
- C) Rs 734
- D) Rs 600
Why: 5,650 ÷ 1.13 = 5,000; VAT = 650.
An item costs Rs 2,000 before VAT. What is the VAT at 13%?
- A) Rs 260 ✔
- B) Rs 200
- C) Rs 300
- D) Rs 2,260
Why: 2000 × 13% = 260.
An item costs Rs 4,500 before VAT. What is the VAT at 13%?
- A) Rs 450
- B) Rs 585 ✔
- C) Rs 675
- D) Rs 5,085
Why: 4500 × 13% = 585.
An item costs Rs 12,000 before VAT. What is the VAT at 13%?
- A) Rs 1,200
- B) Rs 1,800
- C) Rs 1,560 ✔
- D) Rs 13,560
Why: 12000 × 13% = 1560.
An item costs Rs 800 before VAT. What is the VAT at 13%?
- A) Rs 80
- B) Rs 120
- C) Rs 904
- D) Rs 104 ✔
Why: 800 × 13% = 104.
An item costs Rs 35,000 before VAT. What is the VAT at 13%?
- A) Rs 4,550 ✔
- B) Rs 3,500
- C) Rs 5,250
- D) Rs 39,550
Why: 35000 × 13% = 4550.
An item costs Rs 6,400 before VAT. What is the VAT at 13%?
- A) Rs 640
- B) Rs 832 ✔
- C) Rs 960
- D) Rs 7,232
Why: 6400 × 13% = 832.
Price is Rs 1,000 excluding VAT. What is the price including 13% VAT?
- A) Rs 1,100
- B) Rs 870
- C) Rs 1,130 ✔
- D) Rs 1,300
Why: 1000 + 13% = 1130.
Price is Rs 5,000 excluding VAT. What is the price including 13% VAT?
- A) Rs 5,500
- B) Rs 4,350
- C) Rs 6,500
- D) Rs 5,650 ✔
Why: 5000 + 13% = 5649.999999999999.
Price is Rs 9,000 excluding VAT. What is the price including 13% VAT?
- A) Rs 10,170 ✔
- B) Rs 9,900
- C) Rs 7,830
- D) Rs 11,700
Why: 9000 + 13% = 10169.999999999998.
Price is Rs 2,500 excluding VAT. What is the price including 13% VAT?
- A) Rs 2,750
- B) Rs 2,825 ✔
- C) Rs 2,175
- D) Rs 3,250
Why: 2500 + 13% = 2824.9999999999995.
A bill of Rs 1,130 includes 13% VAT. What is the price before VAT?
- A) Rs 983.1
- B) Rs 1,017
- C) Rs 1,000 ✔
- D) Rs 1,100
Why: 1130 ÷ 1.13 = 1000.0000000000001.
A bill of Rs 2,260 includes 13% VAT. What is the price before VAT?
- A) Rs 1,966.2
- B) Rs 2,147
- C) Rs 2,100
- D) Rs 2,000 ✔
Why: 2260 ÷ 1.13 = 2000.0000000000002.
A bill of Rs 5,650 includes 13% VAT. What is the price before VAT?
- A) Rs 5,000 ✔
- B) Rs 4,915.5
- C) Rs 5,537
- D) Rs 5,100
Why: 5650 ÷ 1.13 = 5000.000000000001.
A bill of Rs 11,300 includes 13% VAT. What is the price before VAT?
- A) Rs 9,831
- B) Rs 10,000 ✔
- C) Rs 11,187
- D) Rs 10,100
Why: 11300 ÷ 1.13 = 10000.000000000002.
An agent sells goods worth Rs 80,000 and gets 5% commission. What is the commission?
- A) Rs 8,000
- B) Rs 2,000
- C) Rs 4,000 ✔
- D) Rs 5,000
Why: 80000 × 5% = 4000.
An agent sells goods worth Rs 1,20,000 and gets 3% commission. What is the commission?
- A) Rs 7,200
- B) Rs 1,800
- C) Rs 4,600
- D) Rs 3,600 ✔
Why: 120000 × 3% = 3600.
An agent earned Rs 3,000 as 5% commission. What were the total sales?
- A) Rs 60,000 ✔
- B) Rs 30,000
- C) Rs 90,000
- D) Rs 15,000
Why: 3000 ÷ 5% = 60000.
An agent earned Rs 4,800 as 4% commission. What were the total sales?
- A) Rs 60,000
- B) Rs 1,20,000 ✔
- C) Rs 1,80,000
- D) Rs 19,200
Why: 4800 ÷ 4% = 120000.
An agent earned Rs 1,500 as 3% commission. What were the total sales?
- A) Rs 25,000
- B) Rs 75,000
- C) Rs 50,000 ✔
- D) Rs 4,500
Why: 1500 ÷ 3% = 50000.
A machine costs Rs 1,00,000, scrap value Rs 10,000, life 5 years. Annual depreciation (straight-line) is:
- A) Rs 20,000
- B) Rs 36,000
- C) Rs 22,000
- D) Rs 18,000 ✔
Why: (Cost − scrap) ÷ life = (100000 − 10000) ÷ 5 = 18000.
A machine costs Rs 2,50,000, scrap value Rs 50,000, life 10 years. Annual depreciation (straight-line) is:
- A) Rs 20,000 ✔
- B) Rs 25,000
- C) Rs 40,000
- D) Rs 30,000
Why: (Cost − scrap) ÷ life = (250000 − 50000) ÷ 10 = 20000.
A machine costs Rs 48,000, scrap value Rs 8,000, life 5 years. Annual depreciation (straight-line) is:
- A) Rs 9,600
- B) Rs 8,000 ✔
- C) Rs 16,000
- D) Rs 11,200
Why: (Cost − scrap) ÷ life = (48000 − 8000) ÷ 5 = 8000.
A computer costs Rs 50,000 and depreciates 20% a year (reducing balance). Its value after 2 years is:
- A) Rs 30,000
- B) Rs 25,600
- C) Rs 32,000 ✔
- D) Rs 45,000
Why: 50000 × (1 − 20/100)^2 = 32000.000000000007.
A computer costs Rs 80,000 and depreciates 10% a year (reducing balance). Its value after 2 years is:
- A) Rs 64,000
- B) Rs 58,320
- C) Rs 76,000
- D) Rs 64,800 ✔
Why: 80000 × (1 − 10/100)^2 = 64800.00000000001.
A computer costs Rs 2,00,000 and depreciates 5% a year (reducing balance). Its value after 2 years is:
- A) Rs 1,80,500 ✔
- B) Rs 1,80,000
- C) Rs 1,71,475
- D) Rs 1,95,000
Why: 200000 × (1 − 5/100)^2 = 180500.
Marked price Rs 2,500, discount 10%. What is the selling price?
- A) Rs 250
- B) Rs 2,250 ✔
- C) Rs 2,750
- D) Rs 2,150
Why: 2500 − 10% = 2250.
Marked price Rs 8,000, discount 15%. What is the selling price?
- A) Rs 1,200
- B) Rs 9,200
- C) Rs 6,800 ✔
- D) Rs 6,700
Why: 8000 − 15% = 6800.
Marked price Rs 1,200, discount 25%. What is the selling price?
- A) Rs 300
- B) Rs 1,500
- C) Rs 800
- D) Rs 900 ✔
Why: 1200 − 25% = 900.
Bought for Rs 4,000 and sold for Rs 5,000. What is the profit percent?
- A) 25% ✔
- B) 20%
- C) 30%
- D) 12.5%
Why: profit ÷ cost × 100 = 1000 ÷ 4000 × 100 = 25%.
Bought for Rs 1,600 and sold for Rs 2,000. What is the profit percent?
- A) 20%
- B) 25% ✔
- C) 30%
- D) 12.5%
Why: profit ÷ cost × 100 = 400 ÷ 1600 × 100 = 25%.
The standard VAT rate in Nepal is:
- A) 10%
- B) 15%
- C) 13% ✔
- D) 18%
Why: Nepal charges VAT at 13%.
Depreciation by the straight-line method is:
- A) Higher every year
- B) Zero in the first year
- C) Charged only on land
- D) Equal every year ✔
Why: The same amount is written off each year.
Under the reducing balance method, depreciation each year is:
- A) Charged on the remaining (written-down) value ✔
- B) Same amount every year
- C) Charged on the original cost always
- D) Not allowed
Why: The rate applies to the book value at the start of each year.
Simple interest on Rs 10,000 at 8% per year for 3 years is:
- A) Rs 2,400 ✔
- B) Rs 12,400
- C) Rs 800
- D) Rs 4,800
Why: SI = P × R × T ÷ 100 = 10000 × 8 × 3 ÷ 100 = 2400.
Simple interest on Rs 25,000 at 10% per year for 2 years is:
- A) Rs 30,000
- B) Rs 5,000 ✔
- C) Rs 2,500
- D) Rs 10,000
Why: SI = P × R × T ÷ 100 = 25000 × 10 × 2 ÷ 100 = 5000.
Simple interest on Rs 40,000 at 6% per year for 5 years is:
- A) Rs 52,000
- B) Rs 2,400
- C) Rs 12,000 ✔
- D) Rs 24,000
Why: SI = P × R × T ÷ 100 = 40000 × 6 × 5 ÷ 100 = 12000.
Compound amount on Rs 10,000 at 10% per year for 2 years (compounded yearly) is:
- A) Rs 12,000
- B) Rs 2,100
- C) Rs 12,600
- D) Rs 12,100 ✔
Why: A = P(1 + R/100)^T = 12100.000000000002.
Compound amount on Rs 20,000 at 5% per year for 2 years (compounded yearly) is:
- A) Rs 22,050 ✔
- B) Rs 22,000
- C) Rs 2,050
- D) Rs 22,550
Why: A = P(1 + R/100)^T = 22050.
Furniture worth Rs 60,000 is depreciated at 15% a year. First-year depreciation is:
- A) Rs 51,000
- B) Rs 9,000 ✔
- C) Rs 18,000
- D) Rs 4,500
Why: 60000 × 15% = 9000.
Furniture worth Rs 90,000 is depreciated at 20% a year. First-year depreciation is:
- A) Rs 72,000
- B) Rs 36,000
- C) Rs 18,000 ✔
- D) Rs 9,000
Why: 90000 × 20% = 18000.