Question:
Directions for questions 35 to 40: Study the following details about a family's monthly income and expenditure and answer the question that follows.
Income Amount / Rate Basic salary Rs. 5,000 Petrol allowance 20% of basic salary PF deduction 10% of basic salary
Expenditure Share of net income Food 28% House rent 22% Entertainment 12% Children's Education 25% Other expenses 13%
How much is the PF deduction?
Directions for questions 35 to 40: Study the following details about a family's monthly income and expenditure and answer the question that follows.
| Income | Amount / Rate |
|---|---|
| Basic salary | Rs. 5,000 |
| Petrol allowance | 20% of basic salary |
| PF deduction | 10% of basic salary |
| Expenditure | Share of net income |
|---|---|
| Food | 28% |
| House rent | 22% |
| Entertainment | 12% |
| Children's Education | 25% |
| Other expenses | 13% |
How much is the PF deduction?
Show Hint
The PF deduction is a percentage of the basic salary only, not of the gross or net income.
Updated On: Jul 15, 2026
- Rs. 500
- Rs. 600
- Rs. 1000
- Rs. 1200
Show Solution
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The Correct Option is A
Solution and Explanation
Step 1: Understanding the Question.
We simply need the rupee value of the PF deduction each month.
Step 2: Key Formula or Approach.
The PF deduction is stated as a percentage of the basic salary, so multiply the basic salary by that percentage.
Step 3: Detailed Explanation.
The basic salary is Rs. 5,000 and the PF deduction is 10 percent of it: \[ 0.10 \times 5000 = 500 \]
The PF percentage is applied to the basic salary alone, not to the gross income of Rs. 6,000 or the net income of Rs. 5,500. Applying it to either of those larger numbers by mistake would wrongly give Rs. 600 or Rs. 550, so it is worth being careful about which base the question intends.
Step 4: Final Answer.
The monthly PF deduction is Rs. 500, so option (a) is correct. \[ \boxed{Rs.\ 500} \]
We simply need the rupee value of the PF deduction each month.
Step 2: Key Formula or Approach.
The PF deduction is stated as a percentage of the basic salary, so multiply the basic salary by that percentage.
Step 3: Detailed Explanation.
The basic salary is Rs. 5,000 and the PF deduction is 10 percent of it: \[ 0.10 \times 5000 = 500 \]
The PF percentage is applied to the basic salary alone, not to the gross income of Rs. 6,000 or the net income of Rs. 5,500. Applying it to either of those larger numbers by mistake would wrongly give Rs. 600 or Rs. 550, so it is worth being careful about which base the question intends.
Step 4: Final Answer.
The monthly PF deduction is Rs. 500, so option (a) is correct. \[ \boxed{Rs.\ 500} \]
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