A debtor can pay 87 paise in the rupee, but if his creditors would take 20\% of his debts, he could pay them and have ₹ 42 left. His debts and assets respectively are:
(a)₹ 400, ₹ 520
(b)₹ 500, ₹ 521
(c)₹ 600, ₹ 522
(d)₹ 1000, ₹ 525
Answer
Answer (as printed): C
Explanation
Let total debt $=x$. Asset $=\frac{87}{100} x$. After paying 20\% of the debt, he is left with 80\% of the debt plus ₹ 42. $$\begin{aligned} \therefore \quad & 80 \% \text { of } x+42=\frac{87}{100} x \Leftrightarrow \frac{87}{100} x-\frac{80}{100} \\ & x=42 \Leftrightarrow x=600 . \\ & \text { So, debt }=₹ 600 \text { and assets }=₹\left(\frac{87}{100} \times 600\right)=₹ 522 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.