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Rate of GST = 5% 

Rate of CGST 2.5%, and Rate of SGST = 2.5%. 

CGST = 2.5/100 x 545 = 13.625 = Rs.13.63 

SGST = CGST = Rs.13.63 

Amount paid by the consumer = Taxable value + CGST + SGST 

= 545 + 13.63 + 13.63 

= 572.26

 Arati Gas Agency has to pay CGST = Rs.13.63. and SGST = Rs.13.63 

Total GST to be paid = 13.63 x 2 = Rs.27.26.

i. For Anna Patil:

Output tax = 28% of 14,000

= 18/100 × 14000

= Rs. 3920

∴ CGST = SGST = GST/2

= 3920/2

= Rs. 1960

∴ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs. 1960 each.

ii. For Shopkeeper in Vasai:

Output tax = 28% of 16,800

= 28/100 × 16,800

= Rs. 4704

∴ CGST = SGST = GST/2

= 4704/2

= Rs. 2352

∴ Amount of CGST and SGST charged by the shopkeeper in Vasai is Rs. 2352 each.

iii. ITC = Rs. 3920

GST payable by shopkeeper in Vasai

= Output tax – ITC

= 4704 – 3920 

= Rs. 784

∴ CGST = SGST = GST payable/2

= 784/2

= Rs. 392

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

i. For Anna Patil: 

Output tax = 28% of 14,000 

= (18/100) × 14000 

= Rs. 3920

∴ CGST = SGST = GST/2

= 3920/2

= Rs.1960 

∴ Amount of CGST and SGST shown in the tax invoice issued by Anna Patil is Rs.1960 each. 

ii. For Shopkeeper in Vasai: 

Output tax = 28% of 16,800 

= (28/100)× 16,800 

= Rs.4704 

∴ CGST = SGST = GST/2

= 4704/2

= Rs.2352 

∴ Amount of CGST and SGST charged by the shopkeeper in Vasai is Rs.2352 each. 

iii. ITC = Rs.3920 

GST payable by shopkeeper in Vasai 

= Output tax – ITC

= 4704 – 3920 

= Rs. 784

∴ CGST = SGST = (GST payable)/2

= 784/2

= Rs. 392

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

For Malik Gas Agency:

Output tax = 5% of 26500

= 5/100 × 26500

= Rs. 1325

Input tax = 5% of 24500

= 5/100 × 24500

= Rs. 1225

ITC for Malik Gas Agency = Rs. 1225. 

∴ GST payable = Output tax – ITC 

= 1325 – 1225 

= Rs. 100

CGST = UTGST = \(\frac{\text{GST payable}}{2} = \frac{100}{2}\)

∴ CGST = UTGST = Rs. 50

∴ The GST to be paid at the rate of 5% is Rs. 100 and hence, CGST and UTGST paid for the transaction is Rs. 50 each.

Output tax = Rs. 14,750 

Input tax = Rs. 12,500 

∴ ITC for Nazama = Rs. 12,500. 

∴ GST payable = Output tax – ITC 

= 14750 – 12500 

= Rs. 2250 

∴ Amount of ITC to be claimed is Rs. 12,500 and amount of GST payable is Rs. 2250.

Output tax = Rs. 14,750 

Input tax = Rs.12,500 

∴ ITC for Nazama = Rs.12,500. 

∴ GST payable = Output tax – ITC 

= 14750 – 12500 

= Rs.2250 

∴ Amount of ITC to be claimed is Rs.12,500 and amount of GST payable is Rs.2250.

Output tax (Tax collected at the time of sale) 

= Rs. 1,22,500 

Input tax (Tax paid at the time of purchase) 

= Rs.1,00,500 

ITC (Input Tax credit) = Rs.1,00,500. 

GST payable = Output tax – ITC

= 1,22,500 – 1,00,500 

= Rs. 22,000

GST payable by Chetana stores is Rs. 22,000.

Rate of GST = 12%

\(\therefore\) Rate of CGST = Rate of RGST = Rate of GST/2

= 12/2 = 6%

\(\therefore\) Rate of CGST = Rate of SGST = 6%

Here, output tax is same as input tax. 

∴ Trader payable GST will be zero.

If output tax of a trader in a particular month is less than his input tax, then he won’t be able to get entire credit for his input tax. In such a case his balance credit will be carried forward and adjusted against the subsequent transactions.

Correct answer is

(B) B2B

Correct answer is

(A) 15

Correct answer is

(C) 0%

Correct answer is

(D) 1^st July 2017

Correct answer is

(B) CGST

(A) Rs 1,50,000

According to J.H. Boneville, “The financial plan has two fold aspects, it refers not only to capital structure of the corporation but also to the financial policies which corporation has adopted or intends to adopt”.

Taxable value of 1 tin = Rs. 2800 

∴ Taxable value of 2 tins = 2 × 2800 = Rs. 5600 

Rate of GST = 28 % 

∴ Rate of CGST = Rate of SGST = 14 % CGST = 14% of taxable value 14 

= 14/100 × 5600 .

∴ CGST = Rs. 784

∴ SGST = CGST = Rs. 784 

∴ The amount of CGST and SGST charged in the tax invoice is RS. 784 each.

Printed price of showpiece = Rs. 25,000, Rate of discount = 10% 

∴ Amount of discount = 10% of printed price 

= 10/100 × 25000 

= Rs. 2500 

∴ Taxable value = Printed price – discount 

= 25,000 – 2500 = Rs. 22,500 

Rate of GST = 28%

∴ Rate of CGST = 14% and 

Rate of SGST = 14% 

CGST = 14% of taxable value 

= 14/100 × 22500 = Rs.3150 

∴ CGST = SGST = Rs.3150 

∴ Total amount of tax invoice 

= Taxable value + CGST + SGST 

= 22500 + 3150 + 3150 

= Rs.28,800 

∴ The total amount shown in the tax invoice is Rs.28,800, and the amount of CGST and SGST is Rs.3150 each.

The correct answer is : (C) 18%

The correct answer is : (C) 532500 

NAV = Rs.200 crore / 8 crore units = Rs.25 per unit.

Number of units = sum invested / NAV = 10,000/25 = 400 units.

Correct answer is

(C) 18%

Correct answer is

(A) 5325

Here, FV = Rs. 100, MV = Rs. 120,

Sum invested = Rs. 60,000

Number of shares = Sum invested/MV

\(=\frac{60,000}{120}\)

= 500

∴ Number of shares received were 500.

Here, FV = Rs. 5, Premium = Rs.20, Sum invested = Rs.20,000 

∴ MV = FV + Premium = 5 + 20 

∴ MV = Rs.25 Now, sum invested = Number of shares × MV

∴ Number of shares = Sum invested / MV

= 20,000/25

= 800

∴ Smt. Deshpande got 800 shares for Rs. 20,000.

Here, Face Value of share = Rs. 100,

premium = Rs. 30, brokerage = 0.3% 

MV = FV + Premium 

= 100 + 30 

= Rs. 130 

Brokerage = 0.3% of MV

= 0.3/100 × 130 = Rs. 0.39

Purchase price of a share = MV + Brokerage

= 130 + 0.39 

= Rs. 130.39

Purchase price of a share is Rs. 130.39.

For company A: 

FV = Rs. 2, premium = Rs.18, 

Number of shares = 200 

∴ MV = FV+ Premium 

= 2 + 18 

= Rs.20 

Sum invested = Number of shares × MV 

= 200 × 20 

= Rs.14000 

For company B: 

MV = Rs.500, Number of shares = 45 

Sum invested = Number of shares × MV 

= 45 × 500 

= Rs.22,500

For company C: 

MV = Rs. 10,540, Number of shares 

= 1 x 10540 

∴ Sum invested = Number of shares × MV 

= 1 × 10540

= Rs. 10,540 

∴ Total investment of Joseph = Investment for company A + Investment for company B + Investment for company C 

= 4000 + 22,500 + 10,540 

= Rs. 37040 

∴ Total investment done by Joseph is Rs. 37,040.

Here, FV = Rs. 100, number of shares = 300,

discount = Rs. 30

MV of 1 share = FV – Discount

= 100 – 30 = Rs. 70

∴ MV of 300 shares = 300 × 70

= Rs. 21,000

∴ Amount received is Rs. 21,000.

Here, Face Value of share = Rs. 100, 

premium = Rs.30, brokerage = 0.3% 

MV = FV + Premium 

= 100 + 30 

= Rs.130 

Brokerage = 0.3% of MV 

= (0.3/100) × 130 = Rs.0.39 

Purchase price of a share = MV + Brokerage 

= 130 + 0.39 

= Rs.130.39 

Purchase price of a share is Rs.130.39.

Here, FV = Rs. 100, MV = Rs.120, 

Sum invested = Rs. 60,000

Number of shares = (Sum invested) / MV

= 60,000/120

=500

∴ Number of shares received were 500.

Here, FV = Rs. 100, number of shares = 300, 

discount = Rs.30 

MV of 1 share = FV – Discount 

= 100 – 30 = Rs.70 

∴ MV of 300 shares = 300 × 70 

= Rs.21,000 

∴ Amount received is Rs.21,000.

Here, Number of shares = 50, FV = Rs. 100,

MV = Rs. 180, rate of dividend = 40%

∴ Sum invested = Number of shares × MV

= 50 × 180

= Rs. 9000

Dividend per share = 40% of FV

= 40/100 × 100

Dividend = Rs. 40

∴ Total dividend on 50 shares = 50 × 40

= Rs. 2000

Now, rate of return = \(\frac{\text{Total dividend}}{\text{Sum invested}} \times 100\)

\(= \frac{2000}{9000} \times 100\)

= 22.2%

∴ Rate of return on investment is 22.2%.

Here, Number of shares = 50, FV = Rs.100, MV = Rs.180, rate of dividend = 40% 

∴ Sum invested = Number of shares × MV 

= 50 × 180 

= Rs.9000 

Dividend per share = 40% of FV 

= (40/100) × 100 

Dividend = Rs.40 

∴ Total dividend on 50 shares 

= 50 × 40 

= Rs. 2000

Now. rate of Return = (Total invidend) / (Sum invested) x 

=(2000/9000) x 100

= 22.2%

∴ Rate of return on investment is 22.2%

i. Price of 1 kg of Pedhe is Rs. 400, 

therefore cost of 500 gm. of Pedhe is Rs.200. 

CGST for pedhe at the rate of 2.5% is Rs.[5] and SGST at the rate of [2.5| % is Rs. 5.00. It means that the rate of GST on Pedhe is 2.5% + 2.5% = 5% and hence the total GST is Rs. 10. 

ii. The rate of GST on chocolate is [28] % and hence the total GST is Rs.[22.40] 

iii. Rate of GST on Ice-cream is [18] %, hence the total cost of ice-cream is Rs.236 

iv. On butter CGST rate is [6] % and SGST rate is also [6] %. So GST rate on butter is [12]%.

Sum invested = Number of shares Rs.MV = 50 x 50 = Rs.2500

Here, MV = Rs. 200, Brokerage = 0.3%

Brokerage = 0.3% of MV

= 0.3/100 × 200

= Rs. 0.6

∴ Purchase value of the share = MV + Brokerage

= 200 + 0.6

= Rs. 200.60

∴ Purchase value of the share is Rs. 200.60.

For buying shares:

Here, Number of shares = 100, 

MV of one share = Rs. 45 

∴ Total value = 100 × 45

= Rs. 4500

Brokerage = 0.2% of total value 0.2

= 0.2/100 × 4500

CGST = 9% of brokerage

= 9/100 × 9 = Rs. 0.81

But, SGST = CGST 

∴ SGST = Rs. 0.81 

∴ Purchase value of shares 

= Total value + Brokerage 

= 4500 + 9 + 0.81 + 0.81 

= Rs. 4510.62

For selling shares:

Here, Number of shares = 75, 

MV of one share = Rs. 200 

∴ Total value = 75 × 200 

= Rs. 15000 

Brokerage = 0.2% of total value

= 0.2/100 × 15000

= Rs. 30

CGST = 9% of brokerage

= 9/100 × 30 = Rs. 2.70

But, SGST = CGST

∴ SGST = Rs. 2.70

∴ Selling value of shares = Total value – (Brokerage + CGST + SGST)

= 15000 – (30 + 2.70 + 2.70)

= 15000 – 35.40

= Rs. 14964.60

The correct answer is : (B) The share is at discount of Rs. 25

Here, MV = Rs. 1000, Brokerage = 0.1%

∴ Brokerage = 0.1 % of MV

= 0.1/100 × 1000

∴ Brokerage = Rs. 1

∴ Selling value of the share = MV – Brokerage

= 1000 – 1

= Rs. 999

∴ Amount received after the sale is Rs. 999.

i. Here, share is at par. 

∴ MV = FV 

∴ MV = Rs. 100 

ii. Here, Premium = Rs. 500, MV = Rs. 575 

∴ FV + Premium = MV 

∴ FV + 500 = 575 

∴ FV = 575 – 500 

∴ FV = Rs. 75

iii. Here, FV = Rs. 10, MV = Rs.5 

∴ FV > MV 

Share is at discount. 

FV – Discount = MV 

∴ 10 – Discount = 5 

∴ 10 – 5 = Discount 

Rs.Discount = Rs.5

Correct answer is

(B) The share is at discount of Rs. 25.

Correct option is (A) ₹ 1,50,000

The term ‘financial planning’ refers to assessment of financial requirements and arranging the sources of capital.

The finance manager gets entire information about his firm’s activities and on that basis, he prepares a financial plan.

The financial plan so prepared becomes crucial with respect to decision making. 

The importance of financial planning is as below:

i. Elimination of Waste:

• Through financial planning, several factors such as change in government policy (on taxes), fluctuating interest rates etc. can be anticipated and duly tackled.
• If there is lack of proper financial planning, the organization may suffer huge irreversible and uncompensable losses due to wasteful expenditure.  

ii. Co‐ordination:

• Proper financial planning is the key for smooth functioning of the organizational activities such as production, distribution, marketing and personnel.
• These activities will hamper if not supported by proper financial planning.
• Finance manager brings about co‐ordination among all departmental heads of the organization.

iii. Dynamism:

• A dynamic finance manager would take initiative and face various changing financial situations/challenges as and when they arise.  
• Proper and effective financial planning helps the finance manager to forecast the future trends
• Such forecasting helps the organization to undertake only profitable projects and avoid the unprofitable ones.

iv. Communication:

• Proper financial planning helps the finance manager to communicate the various aspects of financial plan to the executives of other departments. 
• This further helps to eliminate the wastage of time, goodwill and financial resources of the company.

v. Decision Making:

• Financial planning helps a firm to take appropriate and timely decisions to achieve its objectives. 
• Thus, to implement any scheme, there must be a budgetary provision in the financial planning.

vi. Integration:

• A proper financial plan provides a fairly good idea to the firm about its available resources.
• Financial planning is to be completed in full consultation and co‐operation of other departments, which in turn, promotes team spirit among all the executives of the company.
• Thus, financial planning assists in integration of firm’s activities.

vii. Futuristic:

• Financial planning takes into account not only the present but also the future developments.
• This futuristic element of financial planning helps for advance programming.

The term ‘financial planning’ refers to assessment of financial requirements and arranging the sources of capital. 

It is required not only to increase profit but also for survival of the firm. 

It can be implemented with an effective ‘financial plan’. 

The financial plan includes information about the economic environment in which the business operates.

It establishes targets of sales and profits and promotes co‐ordination of resources and efforts to reach these targets.

To sum up, financial planning is ‘an advance programming of all plans of financial management’.

(B) 2018 – 19

The term ‘financial planning’ refers to assessment of financial requirements and arranging the sources of capital.

Objectives of financial planning include:

i. Proper Utilization of Funds:

• Maximum usage of the available financial resources is the basic aim of financial planning. 
• It is important to ensure that adequate funds are raised at no extra cost.

ii. Adequate Supply of Funds:

• Financial planning includes forecasting the firm’s financial needs. 
• It is important to have sufficient supply of funds to ensure smooth functioning of the organization. 
• There must be enough funds so that the firm does not face any financial distress.

iii. Efficient Use of Funds:

• It is important to manage funds wisely.
• Financial planning aims at supervising the usage of funds because the funds so generated are not only for earning profit but also for the survival of the firm.

iv. Elimination of Wasteful Expenditure:

• Financial planning ensures that no excess fund is raised by the firm.  
• It is important that the firm generate or procure only that much amount which is needed. 
• Any extra cost must not be incurred while raising the funds and the funds so raised should be properly utilized as per the requirement of the firm.
• Any surplus so generated needs to be monitored, so as to avoid its misuse.