Practice Set 4.4
- Market value of a share is Rs. 200. If the brokerage rate is 0.3% then find the…
- A share is sold for the market value of Rs. 1000. Brokerage is paid at the rate of…
- Fill in the blanks given in the contract note of sale-purchase of shares. (B - buy S -…
- Smt. Desai sold shares of face value Rs. 100 when the market value was Rs. 50 and…
- Mr. D'souza purchased 200 shares of FV Rs. 50 at a premium of Rs. 100. He received 50%…
Practice Set 4.4
Question 1.
Market value of a share is Rs. 200. If the brokerage rate is 0.3% then find the purchase value of the share.
Answer:
Given, MV = Rs. 200
Brokerage rate = 0.3%
We know that purchase value of a share = MV + Brokerage
∴ Purchase value of a share = 200 + 0.3% of 200
= 200 + 0.60
= Rs. 200.60
Question 2.
A share is sold for the market value of Rs. 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale?
Answer:
Given, MV = Rs. 1000
Brokerage rate = 0.1%
We know that the selling price for a share = MV – Brokerage rate
∴ Selling price for a share = 1000 – 0.1% of 1000
= 1000 – 1
= 999
Question 3.
Fill in the blanks given in the contract note of sale-purchase of shares.
(B - buy S - sell)
Answer:
B-Buy:
We know that Investment (total value) = Number of shares × MV
∴ Total value = 100 × 45
= Rs. 4500
We know that brokerage = Total Value × Brokerage rate
∴ Brokerage = 4500 × 0.2%
= Rs. 9
We know that CGST on brokerage = brokerage × CGST rate
∴ CGST on brokerage = 9 × 9%
= Rs. 0.81
We know that CGST value is equal to SGST value.
∴ SGST on brokerage = Rs. 0.81
We know that total value of shares = Total Value + Brokerage + CGST on brokerage + SGST on brokerage
⇒ Total value of shares = 4500 + 9 + 0.81 + 0.81
= Rs. 4510.62
S-Sell:
Total value = 200 × 75
= Rs. 15000
Brokerage = 15000 × 0.2%
= Rs. 30
CGST on brokerage = 30 × 9%
= Rs. 2.70 = SGST on brokerage
Total value of shares = 15000 + 30 + 2.70 + 2.70
= Rs. 14964.60
Question 4.
Smt. Desai sold shares of face value Rs. 100 when the market value was Rs. 50 and received Rs. 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell?
Answer:
Given, FV = Rs. 100
MV = Rs. 50
Total Value of shares = Rs. 4988.20
Brokerage 0.2% = 
= Rs. 0.1
GST per share on Brokerage = 18% of 0.1 = 0.018
We know that cost of a share = MV + Brokerage + GST
∴ Cost of 1 share = 50 + 0.1 + 0.018 = Rs. 50.118
We know that total value of shares = Total Value + Brokerage + GST on brokerage
∴ 4988.20 = Total Value + 0.1 + 0.018
⇒ Total Value = 4988.20 – 0.1 – 0.018
∴ Total Value = Rs. 4988.082
We know that Investment (Total Value) = Cost × Number of shares
∴ Number of shares = 
= 99.5 ≈ 100
Question 5.
Mr. D'souza purchased 200 shares of FV Rs. 50 at a premium of Rs. 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of Rs. 10 and remaining shares were sold at a premium of Rs. 75. For each trade he paid the brokerage of Rs. 20. Find whether Mr. D'souza gained or incurred a loss? by how much?
Answer:
Given:
Number of shares Mr. D’souza purchased = 200
FV = Rs. 50
Premium = Rs. 100
We know that if MV > FV, then the share is at premium.
∴ MV = FV + Premium
⇒ MV = 50 + 100 = Rs. 150
Value of 200 shares = 200 × 150 = Rs 30,000
We know that dividend per share =
∴ Dividend per share =
= Rs. 25
∴ Total dividend received = 200 × 25 = Rs. 5000
100 shares sold at discount of Rs 10.
∴ Selling price of 100 shares = 100 × (50-10)
= 100 × 40
= Rs 4000
Amount received on selling 100 shares = selling price – brokerage
= 4000 – 20
= Rs 3980
Another 100 shares were sold at a premium of Rs. 75.
∴ MV = FV + Premium
⇒ MV = 50 + 75 = Rs. 125
Selling price of 100 shares = 100× 125
= Rs 12500
Amount received on selling 100 shares = selling price – brokerage
= 12500 – 20
= Rs 12480
Total amount = 5000 + 3980 + 12480
= Rs 21460
Investment = 30,000
Loss = Investment – amount on selling the shares
= 30,000 – 21460
= Rs 8560
