Mathematics Part I Solutions Solutions for Class 10 Math Chapter 4 Financial Planning are provided here with simple step-by-step explanations. These solutions for Financial Planning are extremely popular among Class 10 students for Math Financial Planning Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Mathematics Part I Solutions Book of Class 10 Math Chapter 4 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Mathematics Part I Solutions Solutions. All Mathematics Part I Solutions Solutions for class Class 10 Math are prepared by experts and are 100% accurate.

Page No 87:

Question 1:

‘Pawan Medical’ supplies medicines. On some medicines the rate of GST is 12%, then what is the rate of CGST and SGST?

Answer:


Rate of GST = 12%       (Given)

Now,  

Rate of CGST = Rate of SGST

Also,  

Rate of CGST + Rate of SGST = Rate of GST

⇒ 2 × Rate of CGST = 12%

⇒ Rate of CGST = 6%

∴ Rate of SGST = 6%

Page No 87:

Question 2:

On certain article if rate of CGST is 9% then what is the rate of SGST? and what is the rate of GST?

Answer:


Rate of CGST = 9%

Rate of SGST = Rate of CGST = 9%

∴ Rate of GST = Rate of SGST + Rate of CGST = 9% + 9% =18%

Thus, the rate of SGST is 9% and the rate of GST is 18%.

Page No 87:

Question 3:

‘M/s. Real Paint’ sold 2 tins of lustre paint and taxable value of each tin is Rs 2800. If the rate of GST is 28%, then find the amount of CGST and SGST charged in the tax invoice.

Answer:


Total taxable value of 2 tins of lustre paint = Rs 2,800 × 2 = Rs 5,600

Rate of GST = 28%

∴ Rate of CGST = Rate of SGST = 14%

Amount of CGST charged = Amount of SGST charged = 14100×5600 = Rs 784

Thus, the amount of CGST charged is Rs 784 and the amount of SGST charged is Rs 784 in the tax invoice.

Page No 87:

Question 4:

The taxable value of a wrist watch belt is Rs 586. Rate of GST is 18%. Then what is price of the belt for the customer ?

Answer:


Taxable value of a wrist watch belt = Rs 586

Rate of GST = 18%

Amount of GST = 18100×586 = Rs 105.48

∴ Price of the belt for the customer = Taxable value of a wrist watch belt + Amount of GST = Rs 586 + Rs 105.48 = Rs 691.48

Thus, the price of the belt for the customer is Rs 491.48.

Page No 87:

Question 5:

The total value (with GST) of a remote-controlled toy car is Rs 1770. Rate of GST is 18% on toys. Find the taxable value, CGST and SGST for this toy-car.

Answer:


Let the taxable value of the toy car be Rs x.

​Rate of GST = 18%       (Given)

Taxable value of the toy car + Amount of GST = Rs 1770

x+18100x=1770118100x=1770x=100118×1770=1500
So, the taxable value of the toy-car is Rs 1,500.

Now,

Rate of CGST = Rate of SGST = 9%

∴ Amount of CGST on the toy-car = Amount of SGST on the toy-car = 9100×1500 = Rs 135

Page No 87:

Question 6:

‘Tiptop Electronics’ supplied an AC of 1.5 ton to a company. Cost of the AC supplied is Rs 51,200 (with GST). Rate of CGST on AC is 14%. Then find the following amounts as shown in the tax invoice of Tiptop Electronics.  

(1) Rate of SGST (2) Rate of GST on AC
(3) Taxable value of AC (4) Total amount of GST
(5) Amount of CGST  (6) Amount of SGST

Answer:


(1) Rate of SGST on AC = Rate of CGST on AC = 14%

(2) Rate of GST on AC = Rate of CGST on AC + Rate of SGST on AC = 14% + 14% = 28%

(3) Let the taxable value of AC be Rs x.

Taxable value of AC + Amount of GST = Rs 51,200

x+28100×x=51200128100x=51200x=100128×51200=40000
So, the taxable value of AC is Rs 40,000.

(4) Total amount of GST = Cost of the AC with GST − Taxable value of AC = Rs 51,200 − Rs 40,000 = Rs 11,200

(5) Amount of CGST = 12 × Total amount of GST = 12×11200 = Rs 5,600

(6) Amount of SGST = 12 × Total amount of GST = 12×11200 = Rs 5,600

Page No 87:

Question 7:

Prasad purchased a washing-machine from 'Maharashtra Electronic Goods'. The discount of 5% was given on the printed price of Rs 40,000. Rate of GST charged was 28%. Find the purchase price of washing machine. Also find the amount of CGST and SGST shown in the tax invoice.

Answer:


Printed price of washing machine = Rs 40,000

Discount on washing machine = 5% of Rs 40,000 = 5100×40000 = Rs 2,000

Taxable value of washing machine = Rs 40,000 − Rs 2,000 = Rs 38,000

Rate of GST = 28%

Amount of GST on washing machine = 28% of Rs 38,000 = 28100×38000 = Rs 10,640

∴ Purchase price of washing machine

= Taxable value of washing machine + Amount of GST on washing machine

= Rs 38,000 + Rs 10,640

= Rs 48,640

So, the purchase price of washing machine is Rs 48,640.

Now,

Amount of CGST  = Amount of SGST = 12 × Amount of GST on washing machine = 12 × 10640 = Rs 5,320

Thus, the amount of CGST is Rs 5,320 and the amount of SGST is Rs 5,320 in the tax invoice.



Page No 93:

Question 1:

'Chetana Store' paid total GST of Rs 1,00,500 at the time of purchase and collected GST Rs 1,22,500 at the time of sale during 1st of July 2017 to 31st July 2017. Find the GST payable by Chetana Stores.

Answer:


Tax collected at the time of sale = Rs 1,22,500

Tax collected at the time of purchase = Rs 1,00,500

∴ GST payable = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 1,22,500 − Rs 1,00,500 = Rs 22,000

Thus, the GST payable by Chetana Stores is Rs 22,000.
 

Page No 93:

Question 2:

Nazama is a proprietor of a firm, registered under GST. She has paid GST of Rs 12,500 on purchase and collected Rs 14,750 on sale. What is the amount of ITC to be claimed ? What is the amount of GST payable ?

Answer:


Tax collected at the time of purchase = Rs 12,500

∴ Amount of ITC to be claimed by Nazama = Rs 12,500

Tax collected at the time of sale = Rs 14,750


∴ GST payable = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 14,750 − Rs 12,500 = Rs 2,250

Thus, the amount of GST payable by Nazama is Rs 2,250.

Page No 93:

Question 3:

Amir Enterprise purchased chocolate sauce bottles and paid GST of Rs 3800. He sold those bottles to Akbari Bros. and collected GST of Rs 4100. Mayank Food Corner purchased these bottles from Akabari Bros and paid GST of Rs 4500. Find the amount of GST payable at every stage of trading and hence find payable CGST and SGST.

Answer:


Tax collected by Amir Enterprise at the time of purchase = Rs 3,800

Tax collected
by Amir Enterprise at the time of sale = Rs 4,100

∴ GST payable by Amir Enterprise = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 4,100 − Rs 3,800 = Rs 300

CGST payable by 
Amir Enterprise = SGST payable by Amir Enterprise = 3002 = Rs 150


Tax collected by Akbari Bros. at the time of purchase = Rs 4,100

Tax collected 
by Akbari Bros. at the time of sale = Rs 4,500

∴ GST payable by Akbari Bros. = Tax collected at the time of sale − Tax collected at the time of purchase = Rs 4,500 − Rs 4,100 = Rs 400

CGST payable by 
Akbari Bros. = SGST payable by Akbari Bros. = 4002 = Rs 200

Page No 93:

Question 4:

Malik Gas Agency (Chandigarh Union Territory) purchased some gas cylinders for industrial use for Rs 24,500, and sold them to the local customers for Rs 26,500. Find the GST to be paid at the rate of 5% and hence the CGST and UTGST to be paid for this transaction. (for Union Territories there is UTGST instead of SGST.)

Answer:


Input tax (tax paid at the time of purchase) = 5% of Rs 24,500 = 5100×24500 = Rs 1,225

Output tax (tax paid at the time of sale) = 5% of Rs 26,500 = 5100×26500 = Rs 1,325

∴ GST payable = Output tax − Input tax = Rs 1,325 − Rs 1,225 = Rs 100

Thus, the GST payable by Malik Gas Agency is Rs 100.

CGST payable = UTGST payable = 1002 = Rs 50

Thus, the CGST payable by Malik Gas Agency is Rs 50 and ​the UTGST payable by Malik Gas Agency is Rs 50.

Page No 93:

Question 5:

M/s Beauty Products paid 18% GST on cosmetics worth Rs 6000 and sold to a customer for Rs 10,000. What are the amounts of CGST and SGST shown in the tax invoice issued ?

Answer:


GST in the tax invoice = 18% of Rs 10,000 = 18100×10000 = Rs 1,800

∴ CGST in the tax invoice = SGST in the tax invoice = 18002 = Rs 900

Thus, the amount of CGST in the tax invoice is Rs 900 and the amount of SGST in the tax invoice is Rs 900.

Page No 93:

Question 6:

Prepare Business to Consumer (B2C) tax invoice using given information. Write the name of the supplier, address, state, Date, invoice number, GSTIN etc. as per your choice. Supplier : M/s - - -- - Address- - - - - State - - - - - Date - - - - - - - Invoice No. - - - - - GSTIN - - - - - - - - - - - - - -
Particulars - Rate of Mobile Battery - Rs 200 Rate of GST 12% HSN 8507, 1 pc.
Rate of Headphone - Rs 750 Rate of GST 18% HSN 8518 , 1 pc.

Answer:

 

Tax Invoice of Goods Purchase
                                                   
                                                              Mobile Point, Khed-Shivapur, Pune                                        Invoice No. 55
Mobile No: 7588580000    Email:mobilepoint@xyz.com

GSTIN: 25ZZZZZ9999B1AB                                                                                                                                   Invoice Date: 10-July-2018
S.No. HSN Code Name of the Product Rate Quantity  Taxable Amount CGST              SGST Total
            Rate Tax Rate Tax  
1 8507 Mobile Battery Rs 200 1 Rs 200 6% Rs 12 6% Rs 12 Rs 224
2 8515 Headphone Rs 750 1 Rs 750 9% Rs 67.50 9% Rs 67.50 Rs 885
Total Rs 950   Rs 79.50   Rs 79.50 Rs 1109



Page No 94:

Question 7:

Prepare Business to Business (B2B) Tax Invoice as per the details given below. name of the supplier, address, Date etc. as per your choice. Supplier - Name, Address, State, GSTIN, Invoice No., Date
Recipient - Name, Address, State, GSTIN,
Items : (1) Pencil boxes 100, HSN - 3924,  Rate - Rs 20,  GST 12%
(2) Jigsaw Puzzles 50, HSN 9503,  Rate - Rs 100  GST 12%.

Answer:

Ans

Tax Invoice of Goods Purchase
Supplier: Rama Books, Khed-Shivapur, Pune                                                                                                                               Invoice No. 55
                Mobile No: 7588580000     Email:ramabooks@xyz.com

GSTIN: 25ZZZZZ5555B1AB                                                                                                                                   Invoice Date: 10-July-2018
 
Recipient: Krishna Books, Central Market-Ramapur, Mumbai                                                                                                      
                 Mobile No: 7558850000    Email:krishnabooks@abc.com

GSTIN: 25XXXXX2222C2ED                                                                                                                               
S.No. HSN Code Name of the Item Rate Quantity  Taxable Amount CGST              SGST Total
            Rate Tax Rate Tax  
1 3924 Pencil box Rs 20 100 Rs 2000 6% Rs 120 6% Rs 120 Rs 2240
2 9503 Jigsaw Puzzle Rs 100 50 Rs 5000 6% Rs 300 6% Rs 300 Rs 5600
Total Rs 7000   Rs 420   Rs 420 Rs 7840



Page No 102:

Question 1:

Complete the following table by writting suitable numbers and words.

Sr.No FV Share is at MV
(1) Rs 100 par ...
(2) ... premium Rs 500 Rs 575
(3) Rs 10 ... Rs 5

Answer:


(1) When share is at par, MV (Market value) = FV (Face value)

∴ MV = FV = Rs 100

(2) FV = MV − Premium = Rs 575 − Rs 500 = Rs 75

(3) FV = Rs 10 and MV = Rs 5

Since MV < FV, so the share is at discount.

Discount = FV − MV = Rs 10 − Rs 5 = Rs 5

The complete table is given below:

 
Sr.No FV Share is at MV
(1) Rs 100 par Rs 100
(2) Rs 75 premium Rs 500 Rs 575
(3) Rs 10 discount Rs 5 Rs 5

Page No 102:

Question 2:

Mr.Amol purchased 50 shares of Face Value Rs100 when the Market value of the share was Rs 80. Company had given 20% dividend. Find the rate of return on investment.

Answer:


FV = Rs 100

MV = Rs 80

Number of shares purchased = 50

Sum invested = Number of shares purchased × MV of each share = 50 × 80 = Rs 4,000

Dividend received on each share = 20% of FV of each share = 20% of Rs 100 = 20100×100 = Rs 20

Total dividend received = Number of shares purchased × Dividend received on each share = 50 × 20 = Rs 1,000

∴ Rate of return on investment = Total dividend receivedSum invested×100%=10004000×100% = 25%

Thus, the rate of return on investment is 25%.

Page No 102:

Question 3:

Joseph purchased following shares, Find his total investment.

Company A : 200 shares, FV = Rs 2 Premium = Rs 18
Company B : 45 shares, MV = Rs 500  
Company C : 1 share, MV = Rs 10,540.  

Answer:


Market value of each share of company A = FV + Premium = Rs 2 + Rs 18 = Rs 20

Investment in company A = Number of shares of company A × MV of each share of company A = 200 × 20 = Rs 4,000

Investment in company B = Number of shares of company B × MV of each share of company B = 45 × 500 = Rs 22,500

Investment in company C = Number of shares of company C × MV of each share of company C = 1 × 10540 = Rs 10,540

∴ Total investment = Investment in company A + Investment in company B + Investment in company C 

= Rs 4,000 + Rs 22,500 + Rs 10,540

= Rs 37,040

Thus, the toal investment of Joseph is Rs 37,040.

Page No 102:

Question 4:

Smt. Deshpande purchased shares of FV Rs 5 at a premium of Rs 20. How many shares will she get for Rs 20,000 ?

Answer:


Market value of each share = FV + Premium = Rs 5 + Rs 20 = Rs 25

Sum invested = Rs 20,000

∴ Number of shares = Sum investedMarket value of each share=2000025 = 800

Thus, the number of shares purchased by Smt. Deshpande are 800.

Page No 102:

Question 5:

Shri Shantilal has purchased 150 shares of FV Rs 100, for MV of Rs 120. Company has paid dividend at 7%. Find the rate of return on his investment.

Answer:


FV of each share = Rs 100

MV of each share = Rs 120

Number of shares purchased = 150

Sum invested = Number of shares purchased × MV of each share = 150 × 120 = Rs 18,000

Dividend received on each share = 7% of FV of each share = 7% of Rs 100 = 7100× 100

Total dividend received = Number of shares purchased × Dividend received on each share = 150 × 7 = Rs 1,050

∴ Rate of return on investment = Total dividend receivedSum invested×100%=105018000×100% = 5.83%

Thus, the rate of return on investment is 5.83%.



Page No 103:

Question 6:

If the face value of both the shares is same, then which investment out of the following is more profitable ? 
Company A : dividend 16%, MV = Rs 80, Company B : dividend 20%, MV = Rs 120.

Answer:


Let the face value of each share be Rs x.

Market value of each share of company A = Rs 80

Dividend = 16%

Rate of return from company A = Dividend incomeSum invested×100%=16100×x80×100%=x5%


Market value of each share of company B = Rs 120

Dividend = 20%

​Rate of return from company B = Dividend incomeSum invested×100%=20100×x120×100%=x6%

∴ Rate of return from company A > Rate of return from company B

Thus, the investment in company A is more profitable.



Page No 109:

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:


Market value of the share = Rs 200

Brokerage = 0.3% of Rs 200 = 0.3100×200 = Rs 0.6

∴ Purchase value of the share = MV + Brokerage = Rs 200 + Rs 0.6 = Rs 200.60

Thus, the purchase value of the share is Rs 200.60.

Page No 109:

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:


Market value of the share = Rs 1,000

Brokerage = 0.1% of Rs 1,000 = 0.1100×1000 = Re 1

∴ Selling price of the share = MV − Brokerage = Rs 1,000 − Re 1 = Rs 999

Thus, the amount received after the sale is Rs 999.

 

Page No 109:

Question 3:

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

No. of
shares
MV of
shares
Total
value
Brokerage
0.2%
9% CGST
on
brokerage
9% SGST
on
brokerage
Total
value of
shares
100 B Rs 45          
75 S Rs 200          

Answer:


Number of shares bought = 100

MV value of each share = Rs 45

∴ Total value = Number of shares bought × MV value of each share = 100 × 45 = Rs 4,500

Brokerage = 0.2% of Rs 4,500 = 0.2100×4500 = Rs 9

9% CGST on brokerage = 9% of Rs 9 = 9100×9 = Rs 0.81

9% SGST on brokerage = 9% of Rs 9 = 9100×9 = Rs 0.81

∴ Total value of the shares = Rs 4,500 + Brokerage + 9% CGST on brokerage + 9% CGST on brokerage

= Rs 4,500 + Rs 9 + Rs 0.81 + Rs 0.81

= Rs 4,510.62



Number of shares sold = 75

MV value of each share = Rs 200

∴ Total value = Number of shares sold × MV value of each share = 75 × 200 = Rs 15,000

Brokerage = 0.2% of Rs 15,000 = 0.2100×15000 = Rs 30

9% CGST on brokerage = 9% of Rs 30 = 9100×30 = Rs 2.70

9% SGST on brokerage = 9% of Rs 30 = 9100×30 = Rs 2.70

∴ Total value of the shares = Rs 15,000 − Brokerage − 9% CGST on brokerage − 9% CGST on brokerage 

= Rs 15,000 − Rs 30 − Rs 2.70 − Rs 2.70 

= Rs 14,964.60

The complete table is given below:

 
No. of shares
MV of shares
Total value
Brokerage 0.2%
9% CGST on brokerage
9% SGST on brokerage
Total value of shares
100 B Rs 45 Rs 4,500 Rs 9 Rs 0.81 Rs 0.81 Rs 4,510.62
75 S Rs 200 Rs 15,000 Rs 30 Rs 2.70 Rs 2.70 Rs 14,964.60

Page No 109:

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:


Total amount received = Rs 4988.20

MV of each share = Rs 50

Brokerage per share = 0.2% of Rs 50 = 0.2100×50 = Rs 0.1

GST per share on brokerage = 18% of Rs 0.1 = 18100×0.1 = Rs 0.018

∴ Selling price of each share = MV − Brokerage − GST = Rs 50 − Rs 0.1 − Rs 0.018 = Rs 49.882

Number of shares sold = Total amount receivedSelling price of each share=4988.2049.882 = 100

Thus, the number of shares sold by Smt.Desai are 100.

Page No 109:

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 ` 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:


Cost (or MV) of each share = FV of each share + Premium = Rs 50 + Rs 100 = Rs 150

Number of shares purchased = 200

∴ Amount invested = Cost of each share × Number of shares purchased = Rs 150 × 200 = Rs 30,000

Total dividend received = Number of shares purchased × Dividend received on each share = 200 × 50100×50 = Rs 5,000

Selling price of each share at discount of Rs 10 = Rs 50 − Rs 10 = Rs 40

∴ Selling price of 100 shares at discount of Rs 10 = Rs 40 × 100 = Rs 4,000

Selling price of each share at premium of Rs 75 = Rs 50 + Rs 75 = Rs 125

∴ Selling price of 100 shares at premium of Rs 75 = Rs 125 × 100 = Rs 12,500

Total money received on selling 200 shares = Rs 4,000 + Rs 12,500 = Rs 16,500

Brokerage paid on each trade = Rs 20

∴ Total brokerage paid on 3 trades = Rs 20 × 3 = Rs 60

Net income of Mr. D'souza = Total money received on selling 200 shares + Total dividend received − Total brokerage paid on 3 trades

= Rs 16,500 + Rs 5,000 − Rs 60

= Rs 21,440

Since net income of Mr. D'souza is less than the amount invested, so Mr. D'souza incurred a loss.

Loss incurred = Amount invested − Net income of Mr. D'souza = Rs 30,000 − Rs 21,440 = Rs 8,560

Thus, Mr. D'souza incurred loss of Rs 8,560.

Page No 109:

Question 1:

Write the correct alternative for each of the following.
(1) Rate of GST on essential commodities is ...

(A) 5% (B) 12% (C) 0% (D) 18%

(2) The tax levied by the central government for trading within state is ...
(A) IGST (B) CGST (C) SGST (D) UTGST

(3) GST system was introduced in our country from ...
(A) 31st March 2017 (B) 1st April 2017
(C) 1st January 2017 (D) 1st July 2017

(4) The rate of GST on stainless steel utensils is 18%, then the rate of State GST is ...
(A) 18% (B) 9% (C) 36% (D) 0.9%

(5)  In the format of GSTIN there are ... alpha-numerals.
(A) 15 (B) 10 (C) 16 (D) 9

(6) When a registered dealer sells goods to another registered dealer under GST, then this trading is termed as ...
(A) BB (B) B2B (C) BC (D) B2C

Answer:


(1) Rate of GST on essential commodities is 0%.

Hence, the correct answer is option (C).

(2) The tax levied by the central government for trading within state is CGST.

Hence, the correct answer is option (B).

(3) GST system was introduced in our country from 1st July 2017.

Hence, the correct answer is option (D).

(4) Rate of GST on stainless steel utensils = 18%

Rate of CGST on stainless steel utensils + Rate of SGST on stainless steel utensils = Rate of GST on stainless steel utensils

Also, Rate of CGST on stainless steel utensils = Rate of SGST on stainless steel utensils

∴ 2Rate of SGST on stainless steel utensils = 18%

⇒ Rate of SGST on stainless steel utensils = 9%

The rate of GST on stainless steel utensils is 18%, then the rate of State GST is 9%.

Hence, the correct answer is option (B).

(5) In the format of GSTIN there are 15 alpha-numerals.

Hence, the correct answer is option (A).

(6) When a registered dealer sells goods to another registered dealer under GST, then this trading is termed as B2B.

Hence, the correct answer is option (B).



Page No 110:

Question 2:

A dealer has given 10% discount on a showpiece of Rs 25,000. GST of 28% was charged on the discounted price. Find the total amount shown in the tax invoice. What is the amount of CGST and SGST ?

Answer:


Printed price of showpiece = Rs 25,000

Discount on showpiece = 10% of Rs 25,000 = 10100×25000 = Rs 2,500

Taxable value of showpiece = Rs 25,000 − Rs 2,500 = Rs 22,500

Rate of GST = 28%

Amount of GST on showpiece = 28% of Rs 22,500 = 28100×22500 = Rs 6,300

∴ Purchase price of showpiece = Taxable value of showpiece + Amount of GST on showpiece

= Rs 22,500 + Rs 6,300

= Rs 28,800

So, the total amount shown in the tax invoice is Rs 28,800.

Now,

Amount of CGST = Amount of SGST = 12× Amount of GST on showpiece = 12×6300 = Rs 3,150

Thus, the amount of CGST is Rs 3,150 and the amount of SGST is Rs 3,150.

Page No 110:

Question 3:

A ready-made garment shopkeeper gives 5% discount on the dress of Rs 1000 and charges 5% GST on the remaining amount, then what is the purchase price of the dress for the customer

Answer:


Printed price of dress = Rs 1,000

Discount on dress = 5% of Rs 1,000 = 5100×1000 = Rs 50

Taxable value of dress = Rs 1,000 − Rs 50 = Rs 950

Rate of GST = 5%

Amount of GST on dress = 5% of Rs 950 = 5100×950 = Rs 47.50

∴ Purchase price of dress = Taxable value of dress + Amount of GST on dress

= Rs 950 + Rs 47.50

= Rs 997.50

Thus, the purchase price of the dress for the customer is Rs 997.50.

Page No 110:

Question 4:

A trader from Surat, Gujarat sold cotton clothes to a trader in Rajkot, Gujarat. The taxable value of cotton clothes is Rs 2.5 lacs. What is the amount of GST at 5% paid by the trader in Rajkot ?

Answer:


Taxable value of cotton clothes = Rs 2.5 lacs = Rs 2,50,000

Rate of GST = 5%

∴ Amount of GST paid by the trader = 5% of Rs 2,50,000 = 5100×250000 = Rs 12,500

Thus, the amount of GST paid by the trader is Rs 12,500.
 

Page No 110:

Question 5:

Smt. Malhotra purchased solar panels for the taxable value of Rs 85,000. She sold them for Rs 90,000. The rate of GST is 5%. Find the ITC of Smt. Malhotra. What is the amount of GST payable by her ?

Answer:


Taxable purchase value of the solar panels = Rs 85,000

Rate of GST = 5%

∴ Input tax credit (ITC) = 5% of Rs 85,000 = 5100×85000 = Rs 4,250

Selling price of the solar panels = Rs 90,000

∴ Output tax = 5% of Rs 90,000 = 5100×90000 = Rs 4,500

Amount of GST payable = Output tax − Input tax (ITC) = Rs 4,500 − Rs 4,250 = Rs 250

Thus, the amount of ITC is Rs 4,250 and the amount of GST payable by Smt. Malhotra is Rs 250.

Page No 110:

Question 6:

A company provided Z-security services for the taxable value of Rs 64,500. Rate of GST is 18%. Company had paid GST of Rs 1550 for laundry services and uniforms etc. What is the amount of ITC (input Tax Credit) ? Find the amount of CGST and SGST payable by the company.

Answer:



Input tax credit = GST paid by the company for laundry services and uniforms etc = Rs 1,550

Taxable value for the services paid by the company = Rs 64,500

Rate of GST = 18%

∴ Output tax = 18% of Rs 64,500 = 18100×64500 = Rs 11,610

GST payable = Output tax − Input credit tax = Rs 11,610 − Rs 1,550 = Rs 10,060

∴ CGST payable = SGST payable = GST payable2=100602 = Rs 5,030

Thus, the amount of CGST payable by the company is Rs 5,030 and the SGST payable by the company is Rs 5,030.

Page No 110:

Question 7:

A dealer supplied Walky-Talky set of Rs 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set.

Answer:


Let the taxable value of the Walky-Talky set be Rs x.

​Rate of GST = 12%       (Given)

Taxable value of the Walky-Talky set + Amount of GST = Rs 84,000

x+12100x=84000


112100x=84000

x=84000×100112 = Rs 75,000

So, the taxable value of the Walky-Talky set is Rs 75,000.

Now, Rate of CGST = Rate of SGST = 6%

∴ Amount of CGST on the Walky-Talky set = Amount of SGST on the Walky-Talky set = 6% of Rs 75,000 = 6100×75000 = Rs 4,500

Thus, the amount of CGST charged by the dealer is Rs 4,500 and the amount of SGST charged is Rs 4,500.

Page No 110:

Question 8:

A wholesaler purchased electric goods for the taxable amount of Rs 1,50,000. He sold it to the retailer for the taxable amount of Rs 1,80,000. Retailer sold it to the customer for the taxable amount of Rs 2,20,000. Rate of GST is 18%. Show the computation of GST in tax invoices of sales. Also find the payable CGST and payable SGST for wholesaler and retailer.

Answer:


Rate of GST is 18%.

(1) 
Input tax credit of wholesaler = 18% of Rs 1,50,000 = 18100×150000 = Rs 27,000

Output tax of wholesaler = 18% of Rs 1,80,000 = 18100×180000 = Rs 32,400

GST in tax invoice of wholesaler:

CGST in tax invoice of wholesaler = SGST in tax invoice of wholesaler = Output tax of wholesaler2=324002 = Rs 16,200



Input tax credit of retailer = 18% of Rs 1,80,000 = 18100×180000 = Rs 32,400

Output tax of retailer = 18% of Rs 2,20,000 = 18100×220000 = Rs 39,600

​GST in tax invoice of retailer:

CGST in tax invoice of retailer = SGST in tax invoice of retailer = Output tax of retailer2=396002 = Rs 19,800

(2) 
GST payable by wholesaler = Output tax of wholesaler − Input tax credit of wholesaler = Rs 32,400 − Rs 27,000 = Rs 5,400

CGST payable by wholesaler = SGST payable by wholesaler = GST payable by wholesaler2=54002 = Rs 2,700


GST payable by retailer = Output tax of retailer − Input tax credit of retailer = Rs 39,600 − Rs 32,400 = Rs 7,200

CGST payable by retailer = SGST payable by retailer = GST payable by retailer2=72002 = Rs 3,600

Page No 110:

Question 9:

Anna Patil (Thane, Maharashtra) supplied vacuum cleaner to a shopkeeper in Vasai (Mumbai) for the taxable value of Rs 14,000, and GST rate of 28%. Shopkeeper sold it to the customer at the same GST rate for Rs 16,800 (taxable value) Find the following –
(1) Amount of CGST and SGST shown in the tax invoice issued by Anna Patil.
(2) Amount of CGST and SGST charged by the shopkeeper in Vasai.
(3) What is the CGST and SGST payable by shopkeeper in Vasai at the time of filing the return.

Answer:


Rate of GST is 28%.

(1)
Output tax of Anna Patil = 28% of Rs 14,000 = 28100×14000 = Rs 3,920

∴ CGST in tax invoice of Anna Patil = SGST in tax invoice of Anna Patil = Output tax of Anna Patil2=39202 = Rs 1,960

Thus, the amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs 1,960.

(2)
Input tax credit of shopkeeper in Vasai = 28% of Rs 14,000 = 28100×14000 = Rs 3,920

Output tax of shopkeeper in Vasai = 28% of Rs 16,800 = 28100×16800 = Rs 4,704

∴ CGST in tax invoice of shopkeeper in Vasai = SGST in tax invoice of shopkeeper in Vasai = Output tax of shopkeeper in Vasai2=47042 = Rs 2,352

Thus, the amount of CGST and SGST charged by the shopkeeper in Vasai is Rs 2,352.

(3)
GST payable by shopkeeper in Vasai = Output tax of shopkeeper in Vasai − Input tax credit of shopkeeper in Vasai = Rs 4,704 − Rs 3,920 = Rs 784

∴ CGST payable by shopkeeper in Vasai = SGST payable by shopkeeper in Vasai = GST payable by shopkeeper in Vasai2=7842 = Rs 392

Thus, the CGST and SGST payable by shopkeeper in Vasai at the time of filing the return is Rs 392.



Page No 111:

Question 10:

For the given trading chain prepare the tax invoice I, II, III, GST at the rate of 12% was chanrged for the article supplied.

(1) Prepare the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government.
(2) At the end what amount is paid by the consumer ?
(3) Write which of the invoices issued are B2B and B2C ?

Answer:


(1)
GST in Tax Invoice of Wholesaler:

Taxable value of article = 
₹ 5,000

Rate of GST = 12%

GST payable = 12% of ₹ 5,000 = 12100×5000 = ₹ 600

CGST payable = SGST payable = GST payable2=6002 = ₹ 300

GST in Tax Invoice of Distributor:

Taxable value of article = 
₹ 6,000

Rate of GST = 12%

GST payable = Output tax − Input credit tax = 12% of ₹ 6,000 − 12% of ₹ 5,000 = 12100×6000-5000=12100×1000 = ₹ 120

CGST payable = SGST payable = GST payable2=1202 = ₹ 60

GST in Tax Invoice of Retailer:

Taxable value of article = 
₹ 6,500

Rate of GST = 12%

GST payable = Output tax − Input credit tax = 12% of ₹ 6,500 − 12% of ₹ 6,000 = 12100×6500-6000=12100×500 = ₹ 60

CGST payable = SGST payable = GST payable2=602 = ₹ 30


The following table shows the statement of GST payable under each head by the wholesaler, distributor and retailer at the time of filing the return to the government:
 

  CGST payable SGST payable GST payable
Wholesaler ₹ 300 ₹ 300 ₹ 600
Distributor ₹ 60 ₹ 60 ₹ 120
Retailer ₹ 30 ₹ 30 ₹ 60
Total tax ₹ 390 ₹ 390 ₹ 780

(2)
Amount paid by the consumer for the article

= Taxable value of article to the retailer + GST payable by retailer

₹ 6,500 + ₹ 780

= ₹ 7,280

(3) 
The invoice issued from wholesaler to distributor and the invoice issued from distributor to retailer are B2B invoices whereas the invoice issued from retailer to consumer is B2C invoice.

Page No 111:

Question 1:

Write the correct alternative for the following questions.
(1) If the Face Value of a share is Rs 100 and Market value is Rs 75, then which of the following statements is correct ?

(A) The share is at premium of Rs 175 (B) The share is at discount of Rs 25
(C) The share is at premium of Rs 25 (D) The share is at discount of Rs 75

(2) What is the amount of dividend received per share of face value Rs 10 and dividend declared is 50%.
(A) Rs 50 (B) Rs 5 (C) Rs 500 (D) Rs 100

(3) The NAV of a unit in mutual fund scheme is Rs 10.65 then find the amount required to buy 500 such units.
(A) 5325 (B) 5235 (C) 532500 (D) 53250

(4) Rate of GST on brokerage is ...
(A) 5% (B) 12% (C) 18% (D) 28%

(5) To find the cost of one share at the time of buying the amount of Brokerage and GST is to be ... the MV of share .
(A) added to (B) substracted from
(C) Multiplied with (D) divided by

Answer:


(1) If MV < FV, then the share is at discount.

Discount = FV − MV = Rs 100 − Rs 75 = Rs 25

So, the share is at discount of Rs 25.

Hence, the correct answer is option (B).

(2) Amount of dividend received per share = 50% of Rs 10 = 50100×10 = Rs 5

Hence, the correct answer is option (B).

(3) NAV of a unit in mutual fund scheme = Rs 10.65

Number of units to be bought = 500

∴ Total amount required = NAV of a unit in mutual fund scheme × Number of units to be bought = Rs 10.65 × 500 = Rs 5,325

Hence, the correct answer is option (A).

(4) Rate of GST on brokerage is 18%.

Hence, the correct answer is option (C).

(5) To find the cost of one share at the time of buying the amount of Brokerage and GST is to be added to the MV of share.

Hence, the correct answer is option (A).

Page No 111:

Question 2:

Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%.

Answer:


MV of the share = FV of the share + Premium = Rs 100 + Rs 30 = Rs 130

Brokerage = 0.3% of Rs 130 = 0.3100×130 = Rs 0.39

∴ Purchase price of the share = MV of the share + Brokerage = Rs 130 + Rs 0.39 = Rs 130.39

Thus, the purchase price of the share is Rs 130.39.



Page No 112:

Question 3:

Prashant bought 50 shares of FV Rs 100, having MV Rs 180. Company gave 40% dividend on the shares. Find the rate of return on investment.

Answer:


FV of each share = Rs 100

MV of each share = Rs 180

Number of shares purchased = 50

Sum invested = Number of shares purchased × MV of each share = 50 × 180 = Rs 9,000

Dividend received on each share = 40% of FV of each share = 40% of Rs 100 = 40100×100 = Rs 40

Total dividend received = Number of shares purchased × Dividend received on each share = 50 × 40 = Rs 2,000

∴ Rate of return on investment = Total dividend receivedSum invested×100%=20009000×100% = 22.2%

Thus, the rate of return on investment is 22.2%.

Page No 112:

Question 4:

Find the amount received when 300 shares of FV Rs 100, were sold at a discount of Rs 30.

Answer:


MV of each share = FV of each share − Discount = Rs 100 − Rs 30 = Rs 70

Number of shares sold = 300

∴ Amount received on selling the shares = MV of each share × Number of shares sold = 70 × 300 = Rs 21,000

Thus, the amount received on selling the shares is Rs 21,000.

Page No 112:

Question 5:

Find the number of shares received when Rs 60,000 was invested in the shares of FV Rs 100 and MV Rs 120.

Answer:


Sum invested = Rs 60,000

MV of each share = Rs 120

∴ Number of shares received = Sum investedMV of each share=60000120 = 500

Thus, the number of shares received is 500.

Page No 112:

Question 6:

Smt. Mita Agrawal invested Rs 10,200 when MV of the share is Rs 100. She sold 60 shares when the MV was Rs 125 and sold remaining shares when the MV wasRs 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss ? and how much?

Answer:


Amount invested = Rs 10,200

Market value of each share = Rs 100

∴ Number of shares purchased = Amount investedMarket value of each share=10200100 = 102

Brokerage paid for purchasing the shares = 0.1% of Rs 10,200 = 0.1100×10200 = Rs 10.20


Selling price of 60 shares = MV of each share × Number of shares = Rs 125 × 60 = Rs 7,500

Number of remaining shares = 102 − 60 = 42

Selling price of 42 shares = MV of each share × Number of shares = Rs 90 × 42 = Rs 3,780

Total money received on selling 102 shares = Rs 7,500 + Rs 3,780 = Rs 11,280

Total brokerage paid on selling the shares = 0.1% of Rs 11,280 = 0.1100×11280 = Rs 11.28

Net income of Smt. Mita Agarwal = Total money received on selling 102 shares − Total brokerage paid on 3 trades

= Rs 11,280 − (Rs 10.20 + Rs 11.28)

= Rs 11,258.52

Since net income of Smt. Mita Agarwal is more than the amount invested, so Smt. Mita Agarwal made profit.

Profit made = Amount invested − Net income = Rs 11,258.52 − Rs 10,200 = Rs 1,058.52

Thus, Smt. Mita Agarwal made profit of Rs 1,058.52.

Page No 112:

Question 7:

Market value of shares and dividend declared by the two companies is given below. Face Value is same and it is Rs 100 for both the shares. Investment in which company is more profitable ?
(1) Company A - Rs 132 , 12%
(2) Company B - Rs 144 , 16%

Answer:


The face value of each share is Rs 100.

Market value of share of company A = Rs 132

Dividend = 12%

Dividend income = 12% of Rs 100 = Rs 12

Rate of return from company A = Dividend incomeSum invested×100%=12132×100%=10011%=9111%


Market value of share of company B = Rs 144

Dividend = 16%

Dividend income = 16% of Rs 100 = Rs 16


​Rate of return from company B = Dividend incomeSum invested×100%=16144×100%=1009%=1119%

∴ Rate of return from company B > Rate of return from company A

Thus, the investment in company B is more profitable.

Page No 112:

Question 8:

Shri. Aditya Sanghavi invested Rs 50,118 in shares of FV Rs 100, when the market value is Rs 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for Rs 50,118 ?

Answer:


Sum invested = Rs 50,118

Face value of each share = Rs 100

Market value of each share = Rs 50

Brokerage = 0.2%

Brokerage per share = 0.2% of Rs 50 = 0.2100×50 = Rs 0.1

GST per share on brokerage = 18% of Rs 0.1 = 18100×0.1 = Rs 0.018

Cost of 1 share = Market value of each share + Brokerage per share + GST per share on brokerage = Rs 50 + Rs 0.1 + Rs 0.018 = Rs 50.118

∴ Number of shares purchased = Sum investedCost of each share=5011850.118 = 1000

Thus, the number of shares purchased is 1000.

Page No 112:

Question 9:

Shri. Batliwala sold shares of Rs 30,350 and purchased shares of Rs 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.

Answer:


Selling price of the shares = Rs 30,350

Brokerage = 0.1%

Brokerage paid on selling the shares = 0.1% of Rs 30,350 = 0.1100×30350 = Rs 30.35

GST paid on brokerage = 18% of Rs 30.35 = 18100×30.35 = Rs 5.463

Expenditure on brokerage and tax paid on selling the shares = Rs 30.35 + Rs 5.463 = Rs 35.813


Purchase price of the shares = Rs 69,650

Brokerage = 0.1%

Brokerage paid on purchasing the shares = 0.1% of Rs 69,650 = 0.1100×69650 = Rs 69.65

GST paid on brokerage = 18% of Rs 69.65 = 18100×69.65 = Rs 12.537

Expenditure on brokerage and tax paid on purchasing the shares = Rs 69.65 + Rs 12.537 = Rs 82.187

∴ Total expenditure on brokerage and tax

= Expenditure on brokerage and tax paid on selling the shares + Expenditure on brokerage and tax paid on purchasing the shares

= Rs 35.813 + Rs 82.187

= Rs 118

Thus, the total expenditure on brokerage and tax is Rs 118.

Page No 112:

Question 10:

Smt. Aruna Thakkar purchased 100 shares of FV 100 when the MV is Rs 1200. She paid brokerage at the rate of 0.3% and 18% GST on brokerage. Find the following –
(1) Net amount paid for 100 shares.
(2) Brokerage paid on sum invested.
(3) GST paid on brokerage.
(4) Total amount paid for 100 shares.

Answer:


Face value of each share = Rs 100

Market value of each share = Rs 1,200

Number of shares purchased = 100

(1) Net amount paid for 100 shares = Market value of each share × Number of shares purchased = Rs 1,200 × 100 = Rs 1,20,000

(2) Rate of brokerage = 0.3%

∴ Brokerage paid on sum invested = 0.3% of Rs 1,20,000 = 0.3100×120000 = Rs 360

(3) GST paid on brokerage = 18% of Rs 360 = 18100×360 = Rs 64.80

(4) Total amount paid for 100 shares

= Net amount paid for 100 shares (or Sum invested) + Brokerage paid on sum invested + GST paid on brokerage

= Rs 1,20,000 + Rs 360 + Rs 64.80

= Rs 1,20,424.80

Page No 112:

Question 11:

Smt. Anagha Doshi purchased 22 shares of FV Rs 100 for Market Value of Rs 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was Rs 650. She paid 0.1% brokerage for each trading done. Find the percent of profit or loss in the share trading.
(Write your answer to the nearest integer).

Answer:


Face value of each share = Rs 100

Market value of each share = Rs 660

Number of shares purchased = 22

∴ Amount invested = Market value of each share × Number of shares purchased = Rs 660 × 22 = Rs 14,520

Brokerage paid on purchasing the shares = 0.1% of Rs 14,520 = 0.1100×14520 = Rs 14.52


Total dividend received = Number of shares purchased × Dividend received on each share = 22 × 20100×100 = Rs 440

Selling price of each share = Rs 650

∴ Selling price of 22 shares = Rs 650 × 22 = Rs 14,300

Brokerage paid on selling the shares = 0.1% of Rs 14,300 = 0.1100×14300 = Rs 14.30

∴ Total brokerage paid = Brokerage paid on purchasing the shares + Brokerage paid on selling the shares = Rs 14.52 + Rs 14.30 = Rs 28.82

Net income of Smt. Anagha Doshi = Total money received on selling 22 shares + Total dividend received − Total brokerage paid

= Rs 14,300 + Rs 440 − Rs 28.82

= Rs 14,711.18

Since net income of Smt. Anagha Doshi is more than the amount invested, so Smt. Anagha Doshi had profit.

Profit = Net income of Smt. Anagha Doshi − Amount invested = Rs 14,711.18 − Rs 14,520 = Rs 191.18

∴ Profit% = ProfitAmount invested×100%=191.1814520×100% ≈ 1%  (answer to the nearest integer)


Thus, the profit percent in the share trading is 1% (answer to the nearest integer).



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