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Ex 6

The document outlines the process of creating an Excel sheet for calculating stationery costs, including total cost, VAT, and final cost with a 2% sales tax. It explains the use of absolute and relative referencing in Excel formulas to ensure correct calculations when dragging formulas across cells. The final result demonstrates successful implementation of these referencing techniques in the spreadsheet.

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prithi
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0% found this document useful (0 votes)
20 views3 pages

Ex 6

The document outlines the process of creating an Excel sheet for calculating stationery costs, including total cost, VAT, and final cost with a 2% sales tax. It explains the use of absolute and relative referencing in Excel formulas to ensure correct calculations when dragging formulas across cells. The final result demonstrates successful implementation of these referencing techniques in the spreadsheet.

Uploaded by

prithi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Absolute and Relative referencing

Consider the problem of preparing a stationary order for the month of March. The item description,
quantity and cost per item are available. The total cost per item is to be calculated and the final cost
per item involves a sales tax of 2% over the total cost. The gross total and the net total are to be
displayed.

Aim:

Create a excel sheet with the stationery data for calculating the absolute and relative referencing.

Steps: 1. Create an excel sheet with the available data as shown below:

2. Add the columns total cost per item, VAT and Cost + VAT

3. Fill in the V.A.T value (2%) in one of the cells say G1 so as to not to affect the other calculations.

4. Multiply quantity*cost per item to obtain the total cost

5. Multiply the V.A.T value with the total cost of each item to obtain V.A.T column

a. Observe what happens when you drag the cells after you fill in the formula for the first item

b. The first item gets filled correctly but the other items show zero as shown below:
c. This is because the formula changes relatively for the subsequent cells as D4*G2,D5*G3 etc..
Where as the value is present only in one cell G1. To prevent this automatic changing of cell values
(also called relative referencing which excel does by default), anchor the cell G1 as G$1. The $ infront
of a row or column prevents automatic updation of the row/column value when dragged. Here G is
stationary by default but rows change as 1,2,3,.. etc so we anchor the row as G$1. and then drag the
formula which updates the cells properly as shown below:
6. Calculate Cost + VAT

7. Display the total cost

Result:

Hence the Absolute and Relative referencing created in Ms Excel successfully.

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