Re: ::: vuaskari.com ::: ACC501 Question

AOA Arooj,
I m explaining u this question.

Examiner is asking that what will be ur capital gain after selling the
whole shares?

Note that capital gain is also called capital profit or simply profit
of corporation.

Formula ( according to question ) : Capital gain = Sale price of
shares - cost price of shares

Solution:
Computation of cost price of shares

1500 shares @ 25 each = Rs.37500

Computation of sale price of shares

1500 shares @ 30 each = Rs.45000

Now we'll calculate capital gain or profit:

Capital gain = Sale price of shares - cost price of shares

= 45000 - 37500

Thus, Capital gain = Rs.7500

Note: Examiner question k last main cash inflow ka bta raha hai k
agar us main dividend bhe add ho to 48000 bantay hain.Aap is ko skip
kro, ye line just confuse krny k liye hai.Bcoz Income statement say
hum profit or loss calculate krty hain & cash flow statement say
humain corporation ki actual cash position pata chalti hai i.e, ( cash
inflow + cash outflow ).I hope u will observe it

Fahad Mumtaz

On 11/25/11, mc110403828 Arooj Zameer Ghouri <mc110403828@vu.edu.pk> wrote:
> Anyone one can Explain thin plzz
> **
> **
> *Suppose you bought 1,500 shares of a corporation at Rs. 25 each. After a
> year, you received Rs. 3000 (Rs. 2 per share) in dividends. At the end of
> year the stock sells for Rs. 30 each. If you sell the stock at the end of
> the year, your total cash inflow will be Rs. 48,000 (1500 shares @ 30 each
> = Rs. 45000 & Dividend = 3000). *
>
> *8. According to the given data, the Capital Gain will be:*
>
> 1. 10,500
> 2. *7,500*
> 3. 10,000
> 4. 7,000
>
>
> --
>
>
> Regards,
> Arooj
> MBA Executive
>
> --
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--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
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