PRC-1 · Chapter 5 · Question 25 of 100
Following the previous scenario (Required allowance = Rs. 4,000). If this required allowance is stated to be 'one-third higher than the current (opening) allowance', what was the opening allowance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 3,000
Explanation
If 4,000 is 1/3 higher than the opening allowance (X), then 4,000 = X + (1/3)X = (4/3)X. Therefore, X = 4,000 * 3 / 4 = Rs. 3,000.
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