Question

Shri. Batliwala sold shares of Rupees 30,350 and purchased shares of Rupees 69,650 in a day. He paid brokerage at the rate of 0.1% on sale and purchase. 18% GST was charged on brokerage. Find his total expenditure on brokerage and tax. Solve the word problem

Answer 1

Dear Student,

◆ Answer -

Total expenditure = 118 Rs

◆ Explanation -

Same brokerage of 0.1 % will be applicable for both purchase and sale of shares.

Total brokerage applicable is calculated by -

Total brokerage = (price of shares purchased + price of shares sold) × rate of brokerage

Total brokerage = (30350 + 69650) × 0.1/100

Total brokerage = 100 Rs

18 % GST will be payable on brokerage.

GST paid = brokerage × rate of GST

GST paid = 100 × 18/100

GST paid = 18 Rs

Total expenditure on brokerage and tax is -

Total expenditure = brokerage + GST

Total expenditure = 100 + 18

Total expenditure = 118 Rs

Hope this helps you...