To calculate the total amount owed by Hosi for the vacuum cleaner purchased from Melrose Suppliers, including VAT, we first need to determine the VAT rate. Based on the total amount of R1092.50 and the initial price of R950.00, we can calculate the VAT amount and the VAT rate.
Step 1: Calculate the VAT Amount
- Total Amount Owed: R1092.50
- Price Excluding VAT: R950.00
The VAT amount can be calculated as follows:
\[ \text{VAT Amount} = \text{Total Amount} - \text{Price Excluding VAT} \]
Substituting the values:
\[ \text{VAT Amount} = R1092.50 - R950.00 = R142.50 \]
Step 2: Calculate the VAT Rate
To calculate the VAT rate, we use the formula:
\[ \text{VAT Rate} = \left( \frac{\text{VAT Amount}}{\text{Price Excluding VAT}} \right) \times 100 \]
Substituting the values:
\[ \text{VAT Rate} = \left( \frac{R142.50}{R950.00} \right) \times 100 \approx 15% \]
Conclusion
The total amount of R1092.50 is derived from the initial purchase price of R950.00 plus R142.50 VAT (assuming a VAT rate of approximately 15%):
\[ \text{Total Amount} = \text{Price Excluding VAT} + \text{VAT Amount} = R950.00 + R142.50 = R1092.50 \]
Therefore, Melrose Suppliers calculated the total amount owed by Hosi as R1092.50, which includes the purchase price excluding VAT and the VAT charged.
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