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