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

Question

0

Anurag Pathak25.51K November 9, 2023 0 Comments

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

score 0 · Answer 1 · 2023-11-09T06:23:21+00:00

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