**Chapter 4 Financial Planning Set 4.4**

## Chapter 4 Financial Planning Set 4.4

**Question 1.Market value of a share is â‚¹ 200. If the brokerage rate is 0.3% then find the purchase value of the share.Solution:**

Here, MV = â‚¹ 200, Brokerage = 0.3%

Brokerage = 0.3% of MV

= Ã— 200

= â‚¹ 0.6

âˆ´ Purchase value of the share = MV + Brokerage

= 200 + 0.6

= â‚¹ 200.60

âˆ´ Purchase value of the share is â‚¹ 200.60.

**Question 2.A share is sold for the market value of â‚¹ 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale?Solution:**
Here, MV = â‚¹ 1000, Brokerage = 0.1%

âˆ´ Brokerage = 0.1 % of MV

= Ã— 1000

âˆ´ Brokerage = â‚¹ 1

âˆ´ Selling value of the share = MV â€“ Brokerage

= 1000 â€“ 1

= â‚¹ 999

âˆ´ Amount received after the sale is â‚¹ 999.

**Question 3.Fill in the blanks given in the contract note of sale-purchase of shares.(B â€“ buy S â€“ sell)**

Solution:

Solution:

For buying shares:

Here, Number of shares = 100,

MV of one share = â‚¹ 45

âˆ´ Total value = 100 Ã— 45

= â‚¹ 4500

Brokerage= 0.2% of total value 0.2

= Ã— 4500

CGST = 9% of brokerage

= Ã— 9 = â‚¹ 0.81

But, SGST = CGST

âˆ´ SGST = â‚¹ 0.81

âˆ´ Purchase value of shares

= Total value + Brokerage

= 4500 + 9 + 0.81 + 0.81

= â‚¹ 4510.62

ii. For selling shares:

Here, Number of shares = 75,

MV of one share = â‚¹ 200

âˆ´ Total value = 75 Ã— 200

= â‚¹ 15000

Brokerage = 0.2% of total value

= Ã— 15000

= â‚¹ 30

CGST = 9% of brokerage

= Ã— 30 = â‚¹ 2.70

But, SGST = CGST

âˆ´ SGST = â‚¹ 2.70

âˆ´ Selling value of shares = Total value â€“ (Brokerage + CGST + SGST)

= 15000 â€“ (30 + 2.70 + 2.70)

= 15000 â€“ 35.40

= â‚¹ 14964.60

**Question 4.Smt. Desai sold shares of face value â‚¹ 100 when the market value was â‚¹ 50 and received â‚¹ 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell?Solution:**

Here, face value of share = â‚¹ 100,

MV = â‚¹ 50,

Selling price of shares = â‚¹ 4988.20,

Rate of brokerage = 0.2%, Rate of GST = 18%

Brokerage = 0.2% of MV

**Question 5.Mr. Dâ€™souza purchased 200 shares of FV â‚¹ 50 at a premium of â‚¹ 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of â‚¹ 10 and remaining shares were sold at a premium of â‚¹ 75. For each trade he paid the brokerage of â‚¹ 20. Find whether Mr. Dâ€™souza gained or incurred a loss? By how much?Solution:**
For purchasing shares:

Here, FV = â‚¹ 50, Number of shares = 200,

premium = â‚¹ 100

MV of 1 share = FV + premium

= 50 + 100

= â‚¹ 150

âˆ´ MV of 200 shares = 200 Ã— 150 = â‚¹ 30,000

âˆ´ Mr. Dâ€™souza invested amount

= MV of 200 shares + brokerage

= 30,000 + 20

= â‚¹ 30,020

For selling shares:

Rate of dividend = 50 %, FV = â‚¹ 50,

brokerage = â‚¹ 20

Number of shares = 200

Dividend per share = 50% of FV

= Ã— 50

= â‚¹ 25

âˆ´ Dividend of 200 shares = 200 Ã— 25 = â‚¹ 5,000

Now, 100 shares are sold at a discount of â‚¹ 10.

âˆ´ Selling price of 1 share = FV â€“ discount

= 50 â€“ 10

= â‚¹ 40

âˆ´ Selling price of 100 shares = 100 Ã— 40

= â‚¹ 4000

âˆ´ Amount obtained by selling 100 shares

= selling price â€“ brokerage

= 4000 â€“ 20

= â‚¹ 3980

Also, remaining 100 shares are sold at premium of â‚¹ 75.

âˆ´ selling price of 1 share = FV + premium

= 50 + 75

= â‚¹ 125

âˆ´ selling price of 100 shares = 100 Ã— 125

= â‚¹ 12,500

âˆ´ Amount obtained by selling 100 shares

= selling price â€“ brokerage

= 12,500 â€“ 20

= â‚¹ 12,480

âˆ´ Mr Dâ€™souza income = 5000 + 3980 + 12480

= â‚¹ 21460

Now, Mr Dâ€™souza invested amount > income

âˆ´ Mr Dâ€™souza incurred a loss.

âˆ´ Loss = amount invested â€“ income

= 30020 â€“ 21460

= â‚¹ 8560

âˆ´ Mr. Dâ€™souza incurred a loss of â‚¹ 8560.

**Question 1.Nalinitai invested â‚¹ 6024 in the shares of FV â‚¹ 10 when the Market Value was â‚¹ 60. She sold all the shares at MV of â‚¹ 50 after taking 60% dividend. She paid 0.4% brokerage at each stage of transactions. What was the total gain or loss in this transaction? (Textbook pg. no. 106)Solution:**

Rate of GST is not given in the example, so it is not considered.

For Purchased Shares:

FV = â‚¹ 10, MV = â‚¹ 60

**Question 2.In the above example if GST was paid at 18% on brokerage, then the loss is â‚¹ 451.92. Verify whether you get the same answer. (Textbook pg, no. 107)Solution:**

For Purchased Shares:

FV = â‚¹ 10, MV = â‚¹ 60, sum invested = â‚¹ 6024, brokerage = 0.4 %, GST = 18%

Brokerage per share = Ã— 60 = â‚¹ 0.24 100

GST per share = Ã— 0.24 = â‚¹ 0.0432

âˆ´ Cost of one share = 60 + 0.24 + 0.0432

= â‚¹ 60.2832

âˆ´ Cost of 100 shares = 100 Ã— 60.2832 = â‚¹ 6028.32

For sold shares:

FV = â‚¹ 10, MV = â‚¹ 50, brokerage = 0.4 %,

GST = 18%, Number of shares = 100

Brokerage per share = Ã— 50 = â‚¹ 0.20

GST per share = Ã— 0.20 = â‚¹ 0.036

Selling price per share = 50 â€“ 0.2 â€“ 0.036

= â‚¹ 49.764

Selling price of 100 shares = 100 Ã— 49.764

= â‚¹ 4976.4

Dividend received 60 %

âˆ´ Dividend per share = Ã— 10 = â‚¹ 6

Dividend on 100 shares = 6 Ã— 100 = â‚¹ 600

âˆ´ Nalinitaiâ€™s income = 4976.4 + 600 = â‚¹ 5576.4

âˆ´ Cost of 100 shares = â‚¹ 6028.32

âˆ´ Loss = 6028.32 â€“ 5576.4 = â‚¹ 451.92

âˆ´ Nalinitaiâ€™s loss is â‚¹ 451.92.