1.

12500 Shares, Of Par Value Rs. 20 Each, Are Purchased From Ram By Mohan At A Price Of Rs. 25 Each. If Mohan Further Sells The Shares At A Premium Of Rs. 11 Each, Find His Gain In The Transaction?

Answer»

Face value of each share = Rs.20

Market value of each share = Rs.25

Number of shares = 12500

Amount REQUIRED to purchase the shares = 12500 × 25 = 312500

MOHAN further sells the shares at a premium of Rs. 11 each

ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share

total amount he gets by SELLING all the shares = 12500 × 31 = 387500

His gain = 387500 - 312500 = Rs.75000.

Face value of each share = Rs.20

Market value of each share = Rs.25

Number of shares = 12500

Amount required to purchase the shares = 12500 × 25 = 312500

Mohan further sells the shares at a premium of Rs. 11 each

ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share

total amount he gets by selling all the shares = 12500 × 31 = 387500

His gain = 387500 - 312500 = Rs.75000.



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