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With the base year 1960 the C. L. I in 1972 stood at 250.x was getting a monthly salary of 500 rupees in 1960 and 750 rupees in 1972. In 1972 to maintain his standard of living in 1960 x has to receive an extra allowances of a) 600 b) 500 c) 300 d) None?
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With the base year 1960 the C. L. I in 1972 stood at 250.x was getting...

Calculation of Cost of Living Index (C.L.I)

- C.L.I in 1972 = 250
- Monthly salary in 1960 = 500 rupees
- Monthly salary in 1972 = 750 rupees

Calculating the Increase in Cost of Living

To maintain the same standard of living in 1972 as in 1960, the salary should have increased in proportion to the increase in the cost of living index.

- Increase in salary = (C.L.I in 1972 / C.L.I in 1960) * Salary in 1960
- Increase in salary = (250 / 100) * 500 = 1250 rupees

Determining the Additional Allowance required

To find the additional allowance needed for x to maintain his standard of living in 1972:

- Additional allowance = Salary in 1972 - Increase in salary
- Additional allowance = 750 - 1250 = 500 rupees

Conclusion

Therefore, x would need an additional allowance of 500 rupees in 1972 to maintain the same standard of living as in 1960. Hence, the correct answer is option b) 500.
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With the base year 1960 the C. L. I in 1972 stood at 250.x was getting...
500
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With the base year 1960 the C. L. I in 1972 stood at 250.x was getting a monthly salary of 500 rupees in 1960 and 750 rupees in 1972. In 1972 to maintain his standard of living in 1960 x has to receive an extra allowances of a) 600 b) 500 c) 300 d) None?
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With the base year 1960 the C. L. I in 1972 stood at 250.x was getting a monthly salary of 500 rupees in 1960 and 750 rupees in 1972. In 1972 to maintain his standard of living in 1960 x has to receive an extra allowances of a) 600 b) 500 c) 300 d) None? 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 the C. L. I in 1972 stood at 250.x was getting a monthly salary of 500 rupees in 1960 and 750 rupees in 1972. In 1972 to maintain his standard of living in 1960 x has to receive an extra allowances of a) 600 b) 500 c) 300 d) None? 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 the C. L. I in 1972 stood at 250.x was getting a monthly salary of 500 rupees in 1960 and 750 rupees in 1972. In 1972 to maintain his standard of living in 1960 x has to receive an extra allowances of a) 600 b) 500 c) 300 d) None?.
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