Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Use of Spreadsheet in Business Applications

Question:

What is the formula for calculating Basic Pay Earned (BPE)?

Options:

BPE = BP × DA

BPE = BP x NODM/NOEDP

BPE = BP x NOEDP/NODM

BPE = BP + DA + HRA

Correct Answer:

BPE = BP x NOEDP/NODM

Explanation:

The correct answer is option 3- BPE = BP x NOEDP/NODM.

Basic Pay (BP) is the pay in the pay scale plus Grade Pay, but does not include Special Pay.

Basic Pay Earned of an employee is the Basic Pay calculated with reference to Number of Effective Days present (NOEDP) during the month.
BPE = BP x NOEDP/NODM

Number of Effective Days Present (NOEDP) – is the Number of Days in a Month Minus Leave without Pay minus Unauthorised Absence, i.e.
NOEDP = (Number of Days in a Month) – (Leave without Pay) - (Unauthorised Absence) ; where (Number of Days in a Month) may be denoted by NODM