Practice Set 4.4 Algebra 10th Std Maths Part 1 Answers Chapter 4 Financial Planning
Question 1
Maharashtra Board Solution
Market value of a share is ₹ 200. If the brokerage rate is 0.3% then find the purchase value of the share.
Solution & Step-by-Step Answer:
Here, MV = ₹ 200, Brokerage = 0.3% Brokerage = 0.3% of MV = × 200 = ₹ 0.6 ∴ Purchase value of the share = MV + Brokerage = 200 + 0.6 = ₹ 200.60 ∴ Purchase value of the share is ₹ 200.60.
Question 2
Maharashtra Board Solution
A share is sold for the market value of ₹ 1000. Brokerage is paid at the rate of 0.1%. What is the amount received after the sale?
Solution & Step-by-Step Answer:
Here, MV = ₹ 1000, Brokerage = 0.1% ∴ Brokerage = 0.1 % of MV = × 1000 ∴ Brokerage = ₹ 1 ∴ Selling value of the share = MV – Brokerage = 1000 – 1 = ₹ 999 ∴ Amount received after the sale is ₹ 999.
Question 3
Maharashtra Board Solution
Fill in the blanks given in the contract note of sale-purchase of shares. (B – buy S – sell)
Solution & Step-by-Step Answer:
For buying shares: Here, Number of shares = 100, MV of one share = ₹ 45 ∴ Total value = 100 × 45 = ₹ 4500 Brokerage= 0.2% of total value 0.2 = × 4500 CGST = 9% of brokerage = × 9 = ₹ 0.81 But, SGST = CGST ∴ SGST = ₹ 0.81 ∴ Purchase value of shares = Total value + Brokerage = 4500 + 9 + 0.81 + 0.81 = ₹ 4510.62
ii. For selling shares:
Here, Number of shares = 75,
MV of one share = ₹ 200
∴ Total value = 75 × 200
= ₹ 15000
Brokerage = 0.2% of total value
= × 15000
= ₹ 30
CGST = 9% of brokerage
= × 30 = ₹ 2.70
But, SGST = CGST
∴ SGST = ₹ 2.70
∴ Selling value of shares = Total value – (Brokerage + CGST + SGST)
= 15000 – (30 + 2.70 + 2.70)
= 15000 – 35.40
= ₹ 14964.60
Question 4
Maharashtra Board Solution
Smt. Desai sold shares of face value ₹ 100 when the market value was ₹ 50 and received ₹ 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell?
Solution & Step-by-Step Answer:
Here, face value of share = ₹ 100, MV = ₹ 50, Selling price of shares = ₹ 4988.20, Rate of brokerage = 0.2%, Rate of GST = 18% Brokerage = 0.2% of MV
Question 5
Maharashtra Board Solution
Mr. D’souza purchased 200 shares of FV ₹ 50 at a premium of ₹ 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of ₹ 10 and remaining shares were sold at a premium of ₹ 75. For each trade he paid the brokerage of ₹ 20. Find whether Mr. D’souza gained or incurred a loss? By how much?
Solution & Step-by-Step Answer:
For purchasing shares: Here, FV = ₹ 50, Number of shares = 200, premium = ₹ 100 MV of 1 share = FV + premium = 50 + 100 = ₹ 150 ∴ MV of 200 shares = 200 × 150 = ₹ 30,000 ∴ Mr. D’souza invested amount = MV of 200 shares + brokerage = 30,000 + 20 = ₹ 30,020 For selling shares: Rate of dividend = 50 %, FV = ₹ 50, brokerage = ₹ 20 Number of shares = 200 Dividend per share = 50% of FV = × 50 = ₹ 25 ∴ Dividend of 200 shares = 200 × 25 = ₹ 5,000 Now, 100 shares are sold at a discount of ₹ 10. ∴ Selling price of 1 share = FV – discount = 50 – 10 = ₹ 40 ∴ Selling price of 100 shares = 100 × 40 = ₹ 4000 ∴ Amount obtained by selling 100 shares = selling price – brokerage = 4000 – 20 = ₹ 3980 Also, remaining 100 shares are sold at premium of ₹ 75. ∴ selling price of 1 share = FV + premium = 50 + 75 = ₹ 125 ∴ selling price of 100 shares = 100 × 125 = ₹ 12,500 ∴ Amount obtained by selling 100 shares = selling price – brokerage = 12,500 – 20 = ₹ 12,480 ∴ Mr D’souza income = 5000 + 3980 + 12480 = ₹ 21460 Now, Mr D’souza invested amount > income ∴ Mr D’souza incurred a loss. ∴ Loss = amount invested – income = 30020 – 21460 = ₹ 8560 ∴ Mr. D’souza incurred a loss of ₹ 8560.
Question 1
Maharashtra Board Solution
Nalinitai invested ₹ 6024 in the shares of FV ₹ 10 when the Market Value was ₹ 60. She sold all the shares at MV of ₹ 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 & Step-by-Step Answer:
Rate of GST is not given in the example, so it is not considered. For Purchased Shares: FV = ₹ 10, MV = ₹ 60
Question 2
Maharashtra Board Solution
In the above example if GST was paid at 18% on brokerage, then the loss is ₹ 451.92. Verify whether you get the same
Solution & Step-by-Step Answer:
(Textbook pg, no. 107) Solution: For Purchased Shares: FV = ₹ 10, MV = ₹ 60, sum invested = ₹ 6024, brokerage = 0.4 %, GST = 18% Brokerage per share = × 60 = ₹ 0.24 100 GST per share = × 0.24 = ₹ 0.0432 ∴ Cost of one share = 60 + 0.24 + 0.0432 = ₹ 60.2832 ∴ Cost of 100 shares = 100 × 60.2832 = ₹ 6028.32 For sold shares: FV = ₹ 10, MV = ₹ 50, brokerage = 0.4 %, GST = 18%, Number of shares = 100 Brokerage per share = × 50 = ₹ 0.20 GST per share = × 0.20 = ₹ 0.036 Selling price per share = 50 – 0.2 – 0.036 = ₹ 49.764 Selling price of 100 shares = 100 × 49.764 = ₹ 4976.4 Dividend received 60 % ∴ Dividend per share = × 10 = ₹ 6 Dividend on 100 shares = 6 × 100 = ₹ 600 ∴ Nalinitai’s income = 4976.4 + 600 = ₹ 5576.4 ∴ Cost of 100 shares = ₹ 6028.32 ∴ Loss = 6028.32 – 5576.4 = ₹ 451.92 ∴ Nalinitai’s loss is ₹ 451.92.