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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 the has to be rightly compensated then, 7th dearness allowances to be paid to the employee is :
- a)Rs. 4,800
- b)Rs. 4,700
- c)Rs. 4,500
- d)None of these.
Correct answer is option 'C'. Can you explain this answer?
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Net monthly salary of an employee was Rs. 3000 in 1980. The consumer p...
In 1980 the CPI was 100 and salary was 3000....In 1985 the CPI is 250 so wages in 1985 is {(250�3000)/100} = 7500 ...so DA is 7500 - 3000 =4500
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Net monthly salary of an employee was Rs. 3000 in 1980. The consumer p...
Given:
Net monthly salary in 1980 = Rs. 3000
Consumer price index number in 1985 = 250 (with 1980 as base year)
To find:
7th dearness allowances to be paid to the employee
Solution:
Dearness Allowance (DA) is given by the formula:
DA = (Consumer Price Index (CPI) - Average Index for the past 12 months) / Average Index for the past 12 months x 100
Since we need to find the 7th DA, we need to find the CPI for the 7th year, i.e., 1986.
To find the CPI for 1986, we can use the following formula:
CPI for 1986 = CPI for 1985 x (Price of a typical basket of goods and services in 1986 / Price of the same basket in 1985)
Assuming that the prices of the basket of goods and services increased by 10% from 1985 to 1986, we get:
CPI for 1986 = 250 x (110 / 100) = 275
Now, we can calculate the 7th DA using the formula mentioned earlier:
7th DA = (CPI for 1986 - Average Index for the past 12 months) / Average Index for the past 12 months x 100
Assuming that the average index for the past 12 months is 200, we get:
7th DA = (275 - 200) / 200 x 100 = 37.5%
Therefore, the 7th DA to be paid to the employee is:
7th DA = 37.5% of Rs. 3000 = Rs. 1125
Adding the DA to the net monthly salary in 1980, we get:
Compensated salary = Rs. 3000 + Rs. 1125 = Rs. 4125
However, the options given in the question do not match with the calculated salary. Therefore, the correct answer cannot be determined from the options given.
Net monthly salary in 1980 = Rs. 3000
Consumer price index number in 1985 = 250 (with 1980 as base year)
To find:
7th dearness allowances to be paid to the employee
Solution:
Dearness Allowance (DA) is given by the formula:
DA = (Consumer Price Index (CPI) - Average Index for the past 12 months) / Average Index for the past 12 months x 100
Since we need to find the 7th DA, we need to find the CPI for the 7th year, i.e., 1986.
To find the CPI for 1986, we can use the following formula:
CPI for 1986 = CPI for 1985 x (Price of a typical basket of goods and services in 1986 / Price of the same basket in 1985)
Assuming that the prices of the basket of goods and services increased by 10% from 1985 to 1986, we get:
CPI for 1986 = 250 x (110 / 100) = 275
Now, we can calculate the 7th DA using the formula mentioned earlier:
7th DA = (CPI for 1986 - Average Index for the past 12 months) / Average Index for the past 12 months x 100
Assuming that the average index for the past 12 months is 200, we get:
7th DA = (275 - 200) / 200 x 100 = 37.5%
Therefore, the 7th DA to be paid to the employee is:
7th DA = 37.5% of Rs. 3000 = Rs. 1125
Adding the DA to the net monthly salary in 1980, we get:
Compensated salary = Rs. 3000 + Rs. 1125 = Rs. 4125
However, the options given in the question do not match with the calculated salary. Therefore, the correct answer cannot be determined from the options given.
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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 the has to be rightly compensated then, 7th dearness allowances to be paid to the employee is :a)Rs. 4,800b)Rs. 4,700c)Rs. 4,500d)None of these.Correct answer is option 'C'. Can you explain this answer?
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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 the has to be rightly compensated then, 7th dearness allowances to be paid to the employee is :a)Rs. 4,800b)Rs. 4,700c)Rs. 4,500d)None of these.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 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 the has to be rightly compensated then, 7th dearness allowances to be paid to the employee is :a)Rs. 4,800b)Rs. 4,700c)Rs. 4,500d)None of these.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 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 the has to be rightly compensated then, 7th dearness allowances to be paid to the employee is :a)Rs. 4,800b)Rs. 4,700c)Rs. 4,500d)None of these.Correct answer is option 'C'. Can you explain this answer?.
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