Q 10. Ramit bought 200 shares of a company @ Rs 16 per share. Out of which he sold 150 shares @ Rs 20 per share. What is the total profit made by him and what is the profit percent and to which account it will becredited?
Q 11. X and Y went to Stock Exchange. 'X' purchased shares worth Rs 4,000 and sold for Rs 4,600. Y purchased shares for Rs 3,000 and sold them for Rs 3,600. Who is a better investor and why?
Dear Student
Q10
Computation of profit:
Therefore profit made on the sale of 150 shares is Rs 600 and this profit shall be credited in Profit on sale of shares account.
Profit percentage = Profit / Sales x 100 = 4/20 x 100 = 20%.
Q.11
From the above, we can see that profit on investment is more of Y, that means, Y is able to generate more returns with less amount of investment, therefore, Y is the better investor.
Regards
Q10
Computation of profit:
| Cost Price Per share | 16 | |
| Sale price per share | 20 | |
| Profit per share | (20 - 16) | 4 |
| Profit on selling 150 shares | (4 x 150) | 600 |
Therefore profit made on the sale of 150 shares is Rs 600 and this profit shall be credited in Profit on sale of shares account.
Profit percentage = Profit / Sales x 100 = 4/20 x 100 = 20%.
Q.11
| Particulars | X | Y |
| Purchase price of Shares | 4,000 | 3,000 |
| Selling Price of shares | 4,600 | 3,600 |
| Profit | 600 | 600 |
| Profit on Investment | 15.00% | 20.00% |
| (Profit / Investment x 100) |
From the above, we can see that profit on investment is more of Y, that means, Y is able to generate more returns with less amount of investment, therefore, Y is the better investor.
Regards