Q1.

(C)

Calculation of Gratuity
Years = 19 yrs.
Last salary = Basic + DA = Rs. 11700
Gratuity payable = Last drawn salary *Number of years of service completed *(15/26)
= (11700*19*15)/26
= Rs. 128250

Calculation of Bonus

Total salary = Rs 18000

Maximum Salary to be considered for bonus = Rs 7000
Assumption: Minimum wages for the place where Naveen is employed are less than or
equal to Rs. 7000
% bonus declared by Employer = 20%
Bonus payable to Naveen = 20%*7000*12
= Rs. 16,800