CA Foundation Exam  >  CA Foundation Questions  >  Net monthly salary of an employee was Rs. 300... Start Learning for Free
Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is: 
  • a)
    Rs. 4,200
  • b)
    Rs. 4,500
  • c)
    Rs. 4,900
  • d)
    Rs. 7,500
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Net monthly salary of an employee was Rs. 3000 in 1980. The consumer p...
Calculation of Dearness Allowance

- The consumer price index number in 1985 is 250 with 1980 as base year.
- This means that the cost of living in 1985 is 250/100 times the cost of living in 1980.
- Therefore, the cost of living has increased by 150% (250 - 100 = 150).
- To compensate for this increase, the employee's salary needs to be increased by 150% of his net monthly salary in 1980.
- 150% of Rs. 3000 = Rs. 4500.
- Therefore, the Dearness Allowance to be paid to the employee is Rs. 4500.

Final Answer

Hence, the correct answer is option 'B' - Rs. 4500.
Free Test
Community Answer
Net monthly salary of an employee was Rs. 3000 in 1980. The consumer p...
3000�250�100=7500
7500-3000=4500
Explore Courses for CA Foundation exam
Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer?
Question Description
Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. 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 Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. 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 Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer?.
Solutions for Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:a)Rs. 4,200b)Rs. 4,500c)Rs. 4,900d)Rs. 7,500Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev