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In 1980,the net monthly income of the employee was Rs. 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated.The additional D. A. to be paid to the employee is
  • a)
    Rs. 175/-
  • b)
    Rs. 185/-
  • c)
    Rs. 200/-
  • d)
    Rs. 125.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In 1980,the net monthly income of the employee was Rs. 800/- p. m. The...
Given information:
Net monthly income in 1980 = Rs. 800/-
Consumer price index number in 1980 = 160
Consumer price index number in 1984 = 200

To compensate for the rise in the cost of living, the employee should be given an additional dearness allowance (D.A.). The formula to calculate the D.A. is:

D.A. = (New CPI - Old CPI) / Old CPI x 100
where,
New CPI = 200
Old CPI = 160

D.A. = (200 - 160) / 160 x 100
D.A. = 25%

Therefore, the additional D.A. to be paid to the employee is 25% of Rs. 800/-, which is:

D.A. = 25/100 x 800
D.A. = Rs. 200/-

Hence, the correct answer is option C, i.e., Rs. 200/-.
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Community Answer
In 1980,the net monthly income of the employee was Rs. 800/- p. m. The...
800x200/160 = 1000
additional D.A. = 200
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In 1980,the net monthly income of the employee was Rs. 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated.The additional D. A. to be paid to the employee isa)Rs. 175/-b)Rs. 185/-c)Rs. 200/-d)Rs. 125.Correct answer is option 'C'. Can you explain this answer?
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In 1980,the net monthly income of the employee was Rs. 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated.The additional D. A. to be paid to the employee isa)Rs. 175/-b)Rs. 185/-c)Rs. 200/-d)Rs. 125.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In 1980,the net monthly income of the employee was Rs. 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated.The additional D. A. to be paid to the employee isa)Rs. 175/-b)Rs. 185/-c)Rs. 200/-d)Rs. 125.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In 1980,the net monthly income of the employee was Rs. 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated.The additional D. A. to be paid to the employee isa)Rs. 175/-b)Rs. 185/-c)Rs. 200/-d)Rs. 125.Correct answer is option 'C'. Can you explain this answer?.
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