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With the base year 1960 as the base the C. L. I. In 1972 stood at 250 x was getting a monthly Salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 to maintain his standard of living in 1960 x have received as extra allowances is
  • a)
    Rs. 600/-
  • b)
    Rs. 500/-
  • c)
    Rs. 300/-
  • d)
    none of these.
Correct answer is option 'B'. Can you explain this answer?
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With the base year 1960 as the base the C. L. I. In 1972 stood at 250 ...
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With the base year 1960 as the base the C. L. I. In 1972 stood at 250 ...
Given information:
- Base year: 1960
- C.L.I in 1972: 250
- X's monthly salary in 1960: Rs. 500
- X's monthly salary in 1972: Rs. 750

To maintain the standard of living in 1960, X needs to adjust his salary according to the change in C.L.I from 1960 to 1972.

Calculation:
- Increase in C.L.I from 1960 to 1972 = 250 - 100 (base year index) = 150
- Percentage increase in C.L.I = (150/100) x 100 = 150%
- X's salary in 1972 to maintain the standard of living in 1960 = Rs. 500 x (150/100) = Rs. 750

Therefore, X's salary in 1972 is already Rs. 750, which means he doesn't need any extra allowances to maintain his standard of living in 1960. Hence, the correct answer is option 'B' (Rs. 500/-).
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With the base year 1960 as the base the C. L. I. In 1972 stood at 250 x was getting a monthly Salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 to maintain his standard of living in 1960 x have received as extra allowances isa)Rs. 600/-b)Rs. 500/-c)Rs. 300/-d)none of these.Correct answer is option 'B'. Can you explain this answer?
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With the base year 1960 as the base the C. L. I. In 1972 stood at 250 x was getting a monthly Salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 to maintain his standard of living in 1960 x have received as extra allowances isa)Rs. 600/-b)Rs. 500/-c)Rs. 300/-d)none of these.Correct 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 With the base year 1960 as the base the C. L. I. In 1972 stood at 250 x was getting a monthly Salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 to maintain his standard of living in 1960 x have received as extra allowances isa)Rs. 600/-b)Rs. 500/-c)Rs. 300/-d)none of these.Correct 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 With the base year 1960 as the base the C. L. I. In 1972 stood at 250 x was getting a monthly Salary of Rs. 500 in 1960 and Rs. 750 in 1972. In 1972 to maintain his standard of living in 1960 x have received as extra allowances isa)Rs. 600/-b)Rs. 500/-c)Rs. 300/-d)none of these.Correct answer is option 'B'. Can you explain this answer?.
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