Question

Bhujangrao invested Rs. 2,50,590 in shares of F.V. Rs. 10 when M.V. is Rs. 250. [Nov 2020]

Rate of brokerage is 0.2% and GST is 18%, then find:
a. the number of shares purchased,
b. the amount of brokerage paid, and
c. GST paid for the trading

Answer 1

a. The number of shares purchased can be calculated as:

Number of Shares = (Investment Amount / Face Value)

= 25,059/ 10 = 2,505.9 = 2,506 (to the nearest whole number)

b. The amount of brokerage paid can be calculated as:

Brokerage = (Investment Amount x Brokerage Rate)

= 2,50,590 x 0.002 = Rs. 501.18

c. The GST paid for the trading can be calculated as:

GST = (Brokerage Amount x GST Rate)

= 501.18 x 0.18 = Rs. 90.22