# Calculate National Income by Income and Expenditure Method Opening Stock ₹ 50 Profit ₹ 60

Calculate National Income by Income and Expenditure Method.

Particulars | ₹ in Crores |

(i) Opening Stock | 50 |

(ii) Profit | 60 |

(iii) Closing Stock | 10 |

(iv) Interest | 500 |

(v) Consumption of fixed Capital | 20 |

(vi) Private Final Consumption Expenditure | 460 |

(vii) Mixed Income | 100 |

(viii) Net Exports | (-) 10 |

(ix) Net Factor income from abroad | (-) 5 |

(x) Compensation of employees | 300 |

(xi) Net Capital Formation | 500 |

(xii) Net indirect taxes | 20 |

(xiii) Government final Consumption Expenditure | 100 |

(xiv) Rent | 70 |

Ans: National Income = ₹ 1,025 Crores

Solution:-

**Calculation of National Income by Income Method**

NDP at FC = Compensation of Employees + Mixed Income + Rent + Interest + Profit

NDP at FC = ₹ 300 + ₹ 100 + ₹ 70 + ₹ 500 + ₹ 60

NDP at FC = ₹ 1030 Crores

NNP at FC = NDP at FC + Net Factor income from abroad

NNP at FC = ₹ 1030 + ₹ (-) 5

**NNP at FC = ₹ 1025 Crores**

**Calculation of National Income by Expenditure Method**

NDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Capital Formation + Net Exports

NDP at MP = ₹ 460 + ₹ 100 + ₹ 500 + ₹ (-) 10

NDP at MP = ₹ 1050 Crores

NNP at FC = NDP at MP + Net Factor income from abroad – Net Indirect taxes

NNP at FC = ₹ 1050 + ₹ (-) 5 – ₹ 20

NNP at FC = ₹ 1025 Crores