Rameshbhai purchased 1000 shares of a certain company of face value (FV)=rupees 10, discount=rupees 2. After three months he sold all the shares for face value(FV)= rupees 10. He paid brokerage premium = rupees 8 of 0.5% and 18% goods and services tax(GST) on brokerage for each transaction. How much total profit was earned by Rameshbhai in this dealing. Also calculate the percentage gain received by him.
Answers
Answer:
Step-by-step explanation:
Rameshbhai earned profit of Rs. 9846.60 and he gained 122.36% profit percentage.
Step-by-step explanation:
Number of purchased shares = 1000
Face value of each share = 10 Rs.
Discount = 2 Rs.
Market value of shares = FV - discount
Market value of shares = (10 - 2) × 1000
= 8 × 1000
= 8000 Rs.
Brokerage = 0.5% × 8000
=
= 0.005 × 8000
= 40 Rs.
GST on brokerage = 18% × 40
= 0.18 × 40
= 7.20 Rs.
Total value of 1000 shares = M.V. + Brokerage + GST
= 8000 + 40 + 7.20
= 8047.20
He sold all shares,
Market value = F.V. + Premium
= 10 + 8
= 18 Rs.
Market value of 1000 shares = 1000 × 18
= 18,000 Rs.
Brokerage = 0.5% × 18,000
= 90 Rs.
GST on brokerage = 18% × 90
= 0.18 × 90
= 16.20 Rs.
Selling price of 1000 shares = 18000 -(90 + 16.20)
= 18,000 - 106.20
= 17,893.80 Rs.
Profit on this dealing = selling price - cost price
= 17,893.80 - 8047.20
= 9846.60
Profit percentage =
=
= 122.36%
Rameshbhai earned profit of Rs. 9846.60 and he gained 122.36% profit percentage.
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