Maharashtra Board Class 10 Maths Chapter 4 Financial Planning Set 4.4 Solutions

Question 1. Market value of a share is Rs. 200. If the brokerage rate is 0.3% then find the purchase value of the share.
Answer:
Solution:
Here, MV = Rs. 200, Brokerage = 0.3%
Brokerage = 0.3% of MV
\( = \frac{0.3}{100} \times 200 \)
\( = 0.6 \)
\( \therefore \) Purchase value of the share = MV + Brokerage
\( = 200 + 0.6 \)
\( = \text{Rs. } 200.60 \)
\( \therefore \) Purchase value of the share is Rs. 200.60.
In simple words: To find the purchase value, calculate the brokerage (0.3% of the market value) and add it to the market value of the share.

🎯 Exam Tip: Remember to include brokerage charges when calculating the total purchase value of shares, as it adds to the cost.

Question 2. 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?
Answer:
Solution:
Here, MV = Rs. 1000, Brokerage = 0.1%
\( \therefore \) Brokerage = 0.1 % of MV
\( = \frac{0.1}{100} \times 1000 \)
\( = \text{Rs. } 1 \)
\( \therefore \) Selling value of the share = MV - Brokerage
\( = 1000 - 1 \)
\( = \text{Rs. } 999 \)
\( \therefore \) Amount received after the sale is Rs. 999.
In simple words: When selling shares, brokerage is deducted from the market value, so the net amount received is the market value minus the brokerage.

🎯 Exam Tip: For sales, brokerage is subtracted from the market value, decreasing the amount received by the seller.

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

Answer:
Solution:
For buying shares:
Here, Number of shares = 100,
MV of one share = Rs. 45
\( \therefore \) Total value = \( 100 \times 45 \)
\( = \text{Rs. } 4500 \)
Brokerage = 0.2% of total value
\( = \frac{0.2}{100} \times 4500 \)
\( = \text{Rs. } 9 \)
CGST = 9% of brokerage
\( = \frac{9}{100} \times 9 = \text{Rs. } 0.81 \)
But, SGST = CGST
\( \therefore \) SGST = Rs. 0.81
\( \therefore \) Purchase value of shares
\( = \text{Total value + Brokerage + CGST + SGST} \)
\( = 4500 + 9 + 0.81 + 0.81 \)
\( = \text{Rs. } 4510.62 \)

ii. For selling shares:
Here, Number of shares = 75,
MV of one share = Rs. 200
\( \therefore \) Total value = \( 75 \times 200 \)
\( = \text{Rs. } 15000 \)
Brokerage = 0.2% of total value
\( = \frac{0.2}{100} \times 15000 \)
\( = \text{Rs. } 30 \)
CGST = 9% of brokerage
\( = \frac{9}{100} \times 30 = \text{Rs. } 2.70 \)
But, SGST = CGST
\( \therefore \) SGST = Rs. 2.70
\( \therefore \) Selling value of shares = Total value - (Brokerage + CGST + SGST)
\( = 15000 - (30 + 2.70 + 2.70) \)
\( = 15000 - 35.40 \)
\( = \text{Rs. } 14964.60 \)

In simple words: This question demonstrates the calculations for both buying and selling shares, including market value, brokerage, CGST, and SGST, to determine the final purchase or selling price.

🎯 Exam Tip: Pay close attention to whether shares are being bought or sold, as brokerage and taxes are added for purchases but deducted for sales. Also, remember to calculate CGST and SGST on the brokerage amount, not the total value of shares.

Question 4. Smt. Desai sold shares of face value Rs. 100 when the market value was Rs. 50 and received Rs. 4988.20. She paid brokerage 0.2% and GST on brokerage 18%, then how many shares did she sell?
Answer:
Solution:
Here, face value of share = Rs. 100,
MV = Rs. 50,
Selling price of shares = Rs. 4988.20,
Rate of brokerage = 0.2%, Rate of GST = 18%
Brokerage = 0.2% of MV
\( = \frac{0.2}{100} \times 50 \)
\( = \text{Rs. } 0.1 \)
GST = 18% of brokerage
\( = \frac{18}{100} \times 0.1 \)
\( = \text{Rs. } 0.018 \)
Selling price of one share
\( = \text{MV} - (\text{Brokerage + GST}) \)
\( = 50 - (0.1 + 0.018) \)
\( = 50 - 0.118 \)
\( = 49.882 \)
\( \therefore \) Number of shares \( = \frac{\text{Selling price of all shares}}{\text{Selling price of one share}} \)
\( = \frac{4988.20}{49.882} \)
\( = 100 \)
Smt. Desai sold 100 shares.
In simple words: To find the number of shares sold, first calculate the net selling price per share by deducting brokerage and GST from the market value, then divide the total amount received by this per-share price.

🎯 Exam Tip: When calculating net selling price per share, remember to subtract both the brokerage and the GST (which is applied on the brokerage) from the market value.

Question 5. Mr. D'souza purchased 200 shares of FV Rs. 50 at a premium of Rs. 100. He received 50% dividend on the shares. After receiving the dividend he sold 100 shares at a discount of Rs. 10 and remaining shares were sold at a premium of Rs. 75. For each trade he paid the brokerage of Rs. 20. Find whether Mr. D'souza gained or incurred a loss? By how much?
Answer:
Solution:
For purchasing shares:
Here, FV = Rs. 50, Number of shares = 200,
premium = Rs. 100
MV of 1 share = FV + premium
\( = 50 + 100 \)
\( = \text{Rs. } 150 \)
\( \therefore \) MV of 200 shares = \( 200 \times 150 = \text{Rs. } 30,000 \)
\( \therefore \) Mr. D'souza invested amount
\( = \text{MV of 200 shares + brokerage} \)
\( = 30,000 + 20 \)
\( = \text{Rs. } 30,020 \)
For selling shares:
Rate of dividend = 50 %, FV = Rs. 50,
brokerage = Rs. 20
Number of shares = 200
Dividend per share = 50% of FV
\( = \frac{50}{100} \times 50 \)
\( = \text{Rs. } 25 \)
\( \therefore \) Dividend of 200 shares = \( 200 \times 25 = \text{Rs. } 5,000 \)
Now, 100 shares are sold at a discount of Rs. 10.
\( \therefore \) Selling price of 1 share = FV - discount
\( = 50 - 10 \)
\( = \text{Rs. } 40 \)
\( \therefore \) Selling price of 100 shares = \( 100 \times 40 \)
\( = \text{Rs. } 4000 \)
\( \therefore \) Amount obtained by selling 100 shares
\( = \text{selling price – brokerage} \)
\( = 4000 - 20 \)
\( = \text{Rs. } 3980 \)
Also, remaining 100 shares are sold at premium of Rs. 75.
\( \therefore \) selling price of 1 share = FV + premium
\( = 50 + 75 \)
\( = \text{Rs. } 125 \)
\( \therefore \) selling price of 100 shares = \( 100 \times 125 \)
\( = \text{Rs. } 12,500 \)
\( \therefore \) Amount obtained by selling 100 shares
\( = \text{selling price – brokerage} \)
\( = 12,500 - 20 \)
\( = \text{Rs. } 12,480 \)
\( \therefore \) Mr D'souza income = \( 5000 + 3980 + 12480 \)
\( = \text{Rs. } 21460 \)
Now, Mr D'souza invested amount > income
\( \therefore \) Mr D'souza incurred a loss.
\( \therefore \) Loss = amount invested – income
\( = 30020 - 21460 \)
\( = \text{Rs. } 8560 \)
\( \therefore \) Mr. D'souza incurred a loss of Rs. 8560.
In simple words: This problem involves calculating the total investment, total income from dividend and two separate share sales (after accounting for brokerage), and then comparing investment to income to determine the net gain or loss.

🎯 Exam Tip: Break down multi-step problems like this into individual transactions (purchase, dividend, multiple sales) to avoid errors. Carefully calculate brokerage and apply it correctly (added for purchase, subtracted for sale) for each trade.

Question 1. Nalinitai invested Rs. 6024 in the shares of FV Rs. 10 when the Market Value was Rs. 60. She sold all the shares at MV of Rs. 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)
Answer:
Solution:
Rate of GST is not given in the example, so it is not considered.
For Purchased Shares:
FV = Rs. 10, MV = Rs. 60
Brokerage per share \( = \frac{0.4}{100} \times 60 = 0.24 \)
Cost of one share = \( 60 + 0.24 = 60.24 \)
\( \therefore \) Number of shares \( = \frac{6024}{60.24} = 100 \)
For sold Shares:
FV = Rs. 10, MV = Rs. 50
Brokerage per share \( = \frac{0.4}{100} \times 50 = 0.20 \)
\( \therefore \) Selling price per share = \( 50 - 0.20 = 49.8 \)
\( \therefore \) Selling price of 100 shares = \( 100 \times 49.80 = 4980 \)
Dividend received 60%
Dividend per share \( = \frac{60}{100} \times 10 = 6 \)
Dividend on 100 shares = \( 6 \times 100 = 600 \)
Nalinitai's income = \( 4980 + 600 = \text{Rs. } 5580 \)
Sum invested = Rs. 6024
\( \therefore \) Loss = \( 6024 - 5580 = 444 \)
\( \therefore \) Nalinitai's loss is Rs. 444.
In simple words: First calculate the number of shares bought, then the total income from selling those shares (after brokerage) and dividends. Finally, compare the total income to the initial investment to determine the loss.

🎯 Exam Tip: Clearly distinguish between purchasing and selling costs. Remember to factor in brokerage at both stages and include any dividends received as part of the total income.

Question 2. In the above example if GST was paid at 18% on brokerage, then the loss is Rs. 451.92. Verify whether you get the same answer. (Textbook pg, no. 107)
Answer:
Solution:
For Purchased Shares:
FV = Rs. 10, MV = Rs. 60, sum invested = Rs. 6024, brokerage = 0.4 %, GST = 18%
Brokerage per share \( = \frac{0.4}{100} \times 60 = 0.24 \)
GST per share \( = \frac{18}{100} \times 0.24 = \text{Rs. } 0.0432 \)
\( \therefore \) Cost of one share = \( 60 + 0.24 + 0.0432 \)
\( = \text{Rs. } 60.2832 \)
\( \therefore \) Cost of 100 shares = \( 100 \times 60.2832 = \text{Rs. } 6028.32 \)
For sold shares:
FV = Rs. 10, MV = Rs. 50, brokerage = 0.4 %, GST = 18%, Number of shares = 100
Brokerage per share \( = \frac{0.4}{100} \times 50 = 0.20 \)
GST per share \( = \frac{18}{100} \times 0.20 = \text{Rs. } 0.036 \)
Selling price per share = \( 50 - 0.2 - 0.036 \)
\( = \text{Rs. } 49.764 \)
Selling price of 100 shares = \( 100 \times 49.764 \)
\( = \text{Rs. } 4976.4 \)
Dividend received 60%
\( \therefore \) Dividend per share \( = \frac{60}{100} \times 10 = \text{Rs. } 6 \)
Dividend on 100 shares = \( 6 \times 100 = \text{Rs. } 600 \)
\( \therefore \) Nalinitai's income = \( 4976.4 + 600 = 5576.4 \)
\( \therefore \) Cost of 100 shares = Rs. 6028.32
\( \therefore \) Loss = \( 6028.32 - 5576.4 = \text{Rs. } 451.92 \)
\( \therefore \) Nalinitai's loss is Rs. 451.92.
In simple words: This problem verifies the loss by re-calculating the purchase and selling costs, this time including an 18% GST on the brokerage at both stages, and then comparing the total investment to the total income.

🎯 Exam Tip: When GST is applicable, ensure it's calculated on the brokerage amount and added to the cost for purchases, or deducted from the market value for sales, alongside the brokerage itself.