General Instructions
- The question paper has 19 questions divided into four sections, carrying a total of 40 marks.
- Section A: Questions 1–8, one mark each (8 marks).
- Section B: Questions 9–12, two marks each (8 marks).
- Section C: Questions 13–16, three marks each (12 marks).
- Section D: Questions 17–19, four marks each (12 marks).
- All questions are compulsory. Write the full working wherever marks are awarded for method, not just the final answer.
- All currency amounts are in Indian Rupees (₹).
Section A – Multiple Choice Questions
8 questions × 1 mark = 8 marks
Each question below has four options (A, B, C, D). Choose the one correct answer.
The GST on a taxable value of ₹8,000 at 18% is:
For an intra-state sale with a GST rate of 18%, the CGST rate is:
The interest on a recurring deposit of ₹500 per month for 12 months at 6% per annum is:
The number of shares of market value ₹25 each that can be bought for ₹5,000 is:
The dividend per share on a share of face value ₹10 when the company declares a 15% dividend is:
If the market value of a share is greater than its face value, the share is said to be bought:
If \(P\) is the monthly instalment, \(n\) the number of months and \(I\) the interest, the maturity value of a recurring deposit is:
The rate of return on shares is calculated as:
Section B – Short Answer Questions
4 questions × 2 marks = 8 marks
Find the GST charged on a taxable value of ₹12,500 at 12%.
The price of an article including 18% GST is ₹5,900. Find its taxable value.
Find the interest earned on a recurring deposit of ₹600 per month for 15 months at 8% per annum.
Find the annual dividend on 250 shares of face value ₹20 each when the company declares a dividend of 10%.
Section C – Application Questions
4 questions × 3 marks = 12 marks
The marked price of an article is ₹4,000. A shopkeeper offers a discount of 10% on the marked price and then charges GST at 18% on the discounted price. Find the amount the customer pays.
A trader buys goods for ₹30,000 and sells them for ₹45,000 (both values before tax, both within the same state). If GST is 18%, find the net GST payable by the trader.
Ms. Rao deposits ₹800 per month in a recurring deposit account for 2 years at 7.5% per annum. Find the interest earned and the maturity value.
A man invests ₹18,000 in shares of face value ₹10 each, buying them at a market value of ₹12 per share. The company declares a dividend of 12%. Find his annual income and his rate of return.
Section D – Structured / Long Answer Questions
3 questions × 4 marks = 12 marks
A dealer in Karnataka buys goods for ₹50,000 and sells them for ₹75,000 (both values before tax), with GST at 18% on each. Both transactions are within Karnataka. Find the input GST, the output GST, and the net CGST and net SGST payable to the government.
A person deposits ₹750 per month in a recurring deposit account for 24 months and receives an interest of ₹1,575. Find the rate of interest per annum.
A man buys 600 shares of face value ₹10 each at a premium of 25%. The company pays a dividend of 12%. After one year he sells all the shares at ₹11 each. Find his net gain or loss, including the dividend received.
Check your work: Section A (8) + Section B (8) + Section C (12) + Section D (12) = 40 marks. Attempt the whole paper before revealing the answers below.
Answer Key
Section A – Multiple Choice Questions
| Question | Answer |
|---|---|
| 1 | B |
| 2 | B |
| 3 | A |
| 4 | C |
| 5 | B |
| 6 | C |
| 7 | B |
| 8 | B |
Sections B to D – Final Answers
| Question | Answer |
|---|---|
| 9 | GST = ₹1,500 |
| 10 | Taxable value = ₹5,000 |
| 11 | Interest = ₹480 |
| 12 | Annual dividend = ₹500 |
| 13 | Amount paid = ₹4,248 |
| 14 | Net GST = ₹2,700 (CGST ₹1,350 + SGST ₹1,350) |
| 15 | Interest = ₹1,500; maturity value = ₹20,700 |
| 16 | Income = ₹1,800; rate of return = 10% |
| 17 | Net CGST = ₹2,250; net SGST = ₹2,250 (total ₹4,500) |
| 18 | Rate = 8.4% per annum |
| 19 | Net loss = ₹180 |
Detailed Solutions
Section A – Multiple Choice Questions
GST = \(\dfrac{18}{100} \times 8000 = 18 \times 80 = \text{₹}1{,}440\).
In an intra-state sale the GST is split equally into CGST and SGST. So CGST = half of 18% = 9%.
\(\dfrac{n(n+1)}{2} = \dfrac{12 \times 13}{2} = 78\). \(I = 500 \times 78 \times \dfrac{6}{1200} = \text{₹}195\).
Number of shares = \(\dfrac{\text{investment}}{\text{MV}} = \dfrac{5000}{25} = 200\).
Dividend per share = \(15\% \text{ of } 10 = \dfrac{15}{100} \times 10 = \text{₹}1.50\).
When MV > FV the share is bought at a premium; when MV < FV it is at a discount; when MV = FV it is at par.
Maturity value = total deposits + interest = \(P \times n + I\).
Rate of return compares the dividend (income) with the money actually invested (market value), so it is \(\dfrac{\text{dividend}}{\text{market value}} \times 100\%\).
Section B – Short Answer Questions
GST = \(\dfrac{12}{100} \times 12500 = 12 \times 125 = 1500\).
Taxable value = \(\dfrac{\text{inclusive price}}{1 + \frac{18}{100}} = \dfrac{5900}{1.18} = 5000\).
\(\dfrac{n(n+1)}{2} = \dfrac{15 \times 16}{2} = 120\). \(I = 600 \times 120 \times \dfrac{8}{1200} = 600 \times 120 \times 0.006666 = 480\).
Dividend per share = \(10\% \text{ of } 20 = \text{₹}2\). Annual dividend = \(250 \times 2 = 500\).
Section C – Application Questions
Apply the discount first, then GST on the discounted value.
Discounted value = \(4000 - 10\% \text{ of } 4000 = 4000 - 400 = \text{₹}3{,}600\).
GST = \(18\% \text{ of } 3600 = 0.18 \times 3600 = \text{₹}648\).
Amount paid = \(3600 + 648 = \text{₹}4{,}248\).
Use input tax credit: net GST = output GST − input GST.
Input GST (on ₹30,000) = \(0.18 \times 30000 = \text{₹}5{,}400\).
Output GST (on ₹45,000) = \(0.18 \times 45000 = \text{₹}8{,}100\).
Net GST = \(8100 - 5400 = \text{₹}2{,}700\). Intra-state, so net CGST = net SGST = \(\text{₹}1{,}350\).
2 years = 24 months. Use \(I = P \times \frac{n(n+1)}{2} \times \frac{r}{1200}\).
\(\dfrac{n(n+1)}{2} = \dfrac{24 \times 25}{2} = 300\).
\(I = 800 \times 300 \times \dfrac{7.5}{1200} = \text{₹}1{,}500\).
Total deposits = \(800 \times 24 = \text{₹}19{,}200\). Maturity value = \(19200 + 1500 = \text{₹}20{,}700\).
Find the number of shares using MV, then use the dividend on FV.
Number of shares = \(\dfrac{18000}{12} = 1500\).
Dividend per share = \(12\% \text{ of } 10 = \text{₹}1.20\). Annual income = \(1500 \times 1.20 = \text{₹}1{,}800\).
Rate of return = \(\dfrac{1800}{18000} \times 100\% = 10\%\).
Section D – Structured / Long Answer Questions
Both transactions are intra-state, so work out CGST and SGST separately and set input against output.
Input GST (on purchase) = \(0.18 \times 50000 = \text{₹}9{,}000\), i.e. CGST ₹4,500 + SGST ₹4,500.
Output GST (on sale) = \(0.18 \times 75000 = \text{₹}13{,}500\), i.e. CGST ₹6,750 + SGST ₹6,750.
Net CGST = \(6750 - 4500 = \text{₹}2{,}250\). Net SGST = \(6750 - 4500 = \text{₹}2{,}250\).
Substitute the known values and solve for \(r\).
\(\dfrac{n(n+1)}{2} = \dfrac{24 \times 25}{2} = 300\).
\(1575 = 750 \times 300 \times \dfrac{r}{1200}\). So \(1575 = 225000 \times \dfrac{r}{1200} = 187.5\,r\).
\(r = \dfrac{1575}{187.5} = 8.4\).
Find the buying price, the dividend and the sale proceeds, then compare.
Buying price = \(10 + 25\% \text{ of } 10 = 10 + 2.50 = \text{₹}12.50\). Investment = \(600 \times 12.50 = \text{₹}7{,}500\).
Dividend per share = \(12\% \text{ of } 10 = \text{₹}1.20\); dividend received = \(600 \times 1.20 = \text{₹}720\).
Sale proceeds = \(600 \times 11 = \text{₹}6{,}600\). Loss on sale = \(7500 - 6600 = \text{₹}900\).
Net result = dividend − loss on sale = \(720 - 900 = -\text{₹}180\), i.e. a net loss.