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Question Category: Practice Set Part 4.4

Fill in the blanks given in the contract note of sale-purchase of shares.(B – buy S – sell)

B-Buy:We know that Investment (total value) = Number of shares × MV∴ Total value = 100 × 45= Rs. 4500We know that brokerage = Total Value × Brokerage rate∴ Brokerage = 4500 × 0.2%= Rs. 9We know that CGST on brokerage = brokerage × CGST rate∴ CGST on brokerage = 9 × 9%= Rs. 0.81We know that CGST […]

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?

Given, MV = Rs. 1000Brokerage 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

Market value of a share is Rs. 200. If the brokerage rate is 0.3% then find the purchase value of the share.

Given, MV = Rs. 200Brokerage rate = 0.3%We know that purchase value of a share = MV + Brokerage∴ Purchase value of a share = 200 + 0.3% of 200= 200 + 0.3/100 × 200= 200 + 0.60= Rs. 200.60

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