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A receives a monthly salary of Rs 4,000. What will be the total salary for the year?

Answer and explanation

Correct answer: Rs 48,000

A monthly salary is earned once in each of the twelve months of a normal accounting year. Therefore, the annual salary is calculated by multiplying the monthly amount by 12: Rs 4,000 × 12 = Rs 48,000. The calculation assumes that the salary is payable for the complete year and that there is no unpaid period, bonus, or change in the monthly rate. Option B is only one month’s salary, while option C represents six months. Option D incorrectly adds an extra month to the twelve-month total. Since the question asks for the salary for the whole year, option A, Rs 48,000, is the only correct answer.

Related tags

Partner SalaryMonthly SalaryAnnual CalculationProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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