Mr. D'souza purchased 200 shares of FV ` 50 at a premium of ` 100. He
received 50% dividend on the shares. After receiving the dividend he sold 100
shares at a discount of ` 10 and remaining shares were sold at a premium
of ` 75. For each trade he paid the brokerage of ` 20. Find whether Mr.
D'souza gained or incurred a loss ? by how much ?
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received 50% dividend on the shares. After receiving the dividend he sold 100
shares at a discount of ` 10 and remaining shares were sold at a premium
of ` 75. For each trade he paid the brokerage of ` 20. Find whether Mr.
D'souza gained or incurred a loss ? by how much ?
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Amount invested:
= cost of each share *number of shares purchased
=(50+100)×200
=Rs.30,000
Net income of Mr. D’souza:
= total money received on selling 200 shares + total dividend received – total brokerage paid on 3 trades
=[(50−10)×100+(50+75)×100]+200×(
×50)−(20×3)
=4000+12500+5000−60
=16,500+5000–60
=Rs.21,440
Since the 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
=30,000–21,440=Rs.8560
Thus, Mr. D’souza incurred loss of Rs.8560
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