50 Important Numerical of Income Method (National Income) with solutions class 12 CBSE Board

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I have made collection of all very very important practical numerical of Income method to calculate domestic and National income. All pervious year board questions of income method are also included in this collection.

Must do Numerical of Income method of National Income with solutions class 12 CBSE Board

If you want to have a full proof command over the Income Method. You must solve the following Numerical.

Formula of Income Method to calculate National Income

Before we start to solve, first have a look the formula of income method.

Numerical of income method of national income class 12 CBSE Board

For better understanding of Income Method formula read my below lecture

Detail analysis of Income Method to calculate National income, formula, definition, examples

Lets solve some important numericals.

1 Calculate a) Operating Surplus, and b) Domestic Income;

Items₹ in Crore
i) Compensation of Employees2,000
ii) Rent and interest800
iii) Indirect Taxes120
iv) Corporation tax460
v) Consumption of fixed capital100
vi) Subsidies20
vii) Dividend940
viii) Undistributed Profits300
ix) Net Factor Income to abraod150
c) Mixed Income200

[CBSE – 2018]

Solution:-

Profit = Dividend + Corporation tax + Undistributed Profits

Profit = vii + iv + viii = ₹940 + ₹460 + ₹300 = ₹1700

Operating Surplus = Rent (Royalty) + Interest + Profit

a) Operating Surplus = ₹800 + ₹1700 = ₹2500

b) Domestic Income = NDP at FC = Compensation of Employees + Mixed Income + Operating Surplus

Domestic Income = ₹2000 + ₹200 + ₹2500 = ₹4700

2. Calculate National Income

Items(₹ in crore)
i) Compensation of employees2,000
ii) Profit800
iii) Rent300
iv) Interest250
v) Mixed income of self employed7000
vi) Net current transfers to abroad200
vii) Net Exports– 100
viii) Net indirect taxes1,500
ix) Net Factor income to abroad60
x) Consumption of fixed capital120

[CBSE Foreign – 2017]

Solution:-

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

NDP at FC = ₹2000 + ₹7000 + ₹300 + ₹250 + ₹800 = ₹10350

NNP at FC = NDP at FC + NFIA (factor income from abraod – factor income to abroad)

NNP at FC = 10350 + (0 – 60) = 10350 – 60 = ₹10290

3. Calculate Net National Product at Market Price:

Items(₹ in thousand crore)
1. Compensation of Employees250
2. Mixed income of self employed600
3. Profit80
4. Rent30
5. Interest40
6. Net factor income to abroad– 10
7. Net exports15
8. Consumption of fixed Capital20
9. Net indirect taxes10
10. Net current transfers to abroad8

Solution:-

Domestic Income (NDP at FC) = Compensation of Employees + Mixed Income + Rent(royalty) + Interest + Profit

NDP at FC = 250 + 600 + 30 + 40 + 80 = ₹1000

National Income (NNP at FC) = NDP at FC + NFIA (factor income from abroad – factor income to abroad)

NNP at FC = ₹1000 + [ – (-10)] = 1000 + 10 = ₹1010

NNP at MP = NNP at FC + Net Indirect taxes (Indirect taxes – Subsidy)

NNP at MP = 1010 + 10 = ₹1020

4. Calculate National Income:

Items(₹ in crore)
1. Profit1,000
2. Mixed Income of self employed15,000
3. Dividends200
4. Interest400
5. Compensation of employees7,000
6. Net factor income to abroad100
7. consumption of fixed capital400
8. Net exports– 200
9. Net Indirect taxes800
10. Net Current transfers to rest of the world40
11. Rent500

[CBSE Foreign – 2017]

Solution:-

Domestic Income = Compensations of Employees + Mixed Income + Rent (royalty) + Interest + Profit

Domestic Income = 7,000 + 15,000 + 500 + 400 + 1,000 = ₹23900

NNP at FC = Domestic Income + NFIA

NNP at FC = 23900 – 100 = ₹23800

Further Resources:-

Read Here:- 50+ Important Numerical of Value Added Method (Must Do)

Read Here:- 50+ Important Numerical of Expenditure Method (Must Do)

5. Calculate the Gross National Product at Market Price:

Items(₹ in crore)
1. Compensation of employees2500
2. Profit700
3. Mixed income of self employed7500
4. Government final consumption expenditure3000
5. Rent400
6. Interest350
7. Net factor income from abroad50
8. Net current transfers to abroad100
9. Net indirect taxes150
10. Depreciation70
11. Net exports40

Solution:-

Domestic Income = Compensations of Employees + Mixed Income + Rent (royalty) + Interest + Profit

Domestic Income = 2500 + 7500 + 400 + 350 + 700 = ₹11450

NNP at FC = Domestic Income + NFIA

NNP at FC = 11450 + 50 = ₹11500

GNP at MP = NNP at FC + consumption of fixed capital + Net Indirect taxes

GNP at MP = 11500 + 70 + 150 = ₹11720 crore

6. Calculate the Net National Product at Market Price

Items(₹ in Crore)
1. Mixed income of self Employed8000
2. Depreciation200
3. Profit1000
4. Rent600
5. Interest700
6. Compensation of employees3000
7. Net indirect taxes500
8. Net factor income to abroad60
9. Net exports(-) 50
10. Net current transfers to abroad20

Domestic Income (NDP at FC) = Compensations of Employees + Mixed Income + Rent (royalty) + Interest + Profit

Domestic Income = 3000 + 8000 + 600 + 700 + 1000 = ₹13300

NNP at FC = Domestic Income + NFIA

NNP at FC = 13300 – 60 = ₹13240

NNP at MP = NNP at FC + Net Indirect Taxes

NNP at MP = 13240 + 500 = ₹13740 crore

7. Calculate National Income:-

1. Compensation of employees2000
2. Rent400
3. Profit900
4. Dividend100
5. Interest500
6. Mixed income of self employed7000
7. Net factor income to abroad50
8. Net exports60
9. Net indirect taxes300
10. Depreciation150
11. Net current transfers to abroad30

[CBSE (AI) 2017]

Solution:-

National Income = NNP at FC

Domestic Income (NDP at FC) = Compensation of Employees + Mixed Income of self employed + Rent + Interest + Profit

NDP at FC = 2000 + 7000 + 400 + 500 + 900

NDP at FC = ₹ 10800

NNP at FC = NDP at FC – Net factor income to abroad

NNP at FC = 10800 – 50

NNP at FC = ₹10750

8. Find Net National Product at Market Price:

Items(₹ in crore)
1. Personal taxes200
2. Wage and Salaries1200
3. Undistributed Profit50
4. Rent300
5. Corporation tax200
6. Private Income2000
7. Interest400
8. Net Indirect tax300
9. Net factor income to abroad20
10. Profit500
11. Social Security contributions by employers250

[CBSE Delhi 2016]

Solution:-

Compensation of Employees = Wages and salaries + Social Security contributions by employers

Compensation of Employees = 1200 + 250 = 1450

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

NDP at FC = 1450 + 0 + 300 + 400 + 500

NDP at FC = ₹ 2650

NNP at MP = NDP at FC – Net Factor income to abroad + Net Indirect tax

NNP at MP = 2650 – 20 + 300

NNP at MP = ₹2930 crore

9. Find Net Domestic Product at Factor cost:

Items(₹ in crore)
1. Rent200
2. Net Current transfers to abroad10
3. National debt interest60
4. Corporate tax100
5. Compensation of employees900
6. Current transfers to government150
7. Interest400
8. Undistributed Profits50
9. Dividend250
10. Net Factor income to abroad– 10
11. Income accruing to government120

[CBSE DELHI 2016]

Solution

NDP at FC = Compensation of Employees + Mixed Income + Rent + Interest + Profit (Corporate tax + Dividend + Undistributed profits)

NDP at FC = 900 + 0 + 200 + 400 + (100 + 250 + 50)

NDP at FC = ₹ 1900 crore

10. Find National Income:-

Items(₹ in crore)
1. Wages and Salaries1000
2. Net Current transfers to abroad20
3. Net Factor income paid to abroad10
4. Profit400
5. National debt interest120
6. Social security contributions by employers100
7. Current transfers from government60
8. National income accruing to government150
9. Rent200
10. Interest300
11. Royalty50

[CBSE DELHI 2016]

Solution:-

Compensation of Employee = Wages and Salaries + Social Security Contributions by employers

COE = 1000 + 100 = 1100

NDP at FC = COE + Mixed Income + Rent + Royalty + Interest + Profit

NDP at FC = 1100 + 0 + 200 + 50 + 300 + 400

NDP at FC = 2050

National Income (NNP at FC) = NDP at FC – Net Factor income paid to abroad

National Income = 2050 – 10

National Income = ₹ 2040

Read Here:- 50 Important Numerical of Expenditure Method of National Income Class 12

Read Here:- 50 Important Numerical of Value Added Method of National Income Class 12

11. Calculate Net National Product at Market Price:-

Items(₹ in crore)
1. Net Factor Income to abroad– 10
2. Net current transfers to abroad5
3. Consumption of fixed capital40
4. Compensation of employees700
5. Corporate tax30
6. Undistributed Profits10
7. Interest90
8. Rent100
9. Dividends20
10. Net Indirect tax110
11. Social security contributions by employees11

[CBSE (F) 2015]

Solution:-

NDP at FC = Compensation of employees + Mixed Income + Rent + Interest + Profit ( Corporate tax + Dividend + Undistributed profits)

NDP at FC = 700 + 0 + 100 + 90 + (30 + 20 + 10)

NDP at FC = 950

NNP at MP = NDP at FC – net factor income to abroad + Net Indirect tax

NNP at MP = 950 – (- 10 ) + 110

NNP at MP = ₹ 1070

12. Calculate the Gross National Product at Market Price:

Items(₹ in crore)
1. Wages and Salaries800
2. Personal tax150
3. Operating Surplus200
4. Undistributed Profits10
5. Social Security contributions by employers100
6. Corporate tax50
7. Net factor income to abroad– 20
8. Personal disposable income1200
9. Net indirect tax70
10. Consumption of fixed capital30
11. Mixed income of self employed500
12. Royalty9

[CBSE F 2015]

Solution

Compensation of Employees = Wages and Salaries + Social Security Contributions by Employers

COE = 800 + 100 = 900

NDP at FC = Compensation of Employees + Mixed Income + Operating Surplus

NDP at FC = 900 + 500 + 200

NDP at FC = ₹ 1600

GNP at MP = NDP at FC + Consumption of fixed capital – Net Factor income to abroad + Net indirect tax

GNP at MP = 1600 + 30 – (- 20) + 70

GNP at MP = ₹ 1720

13. Calculate National Income

Items(₹ in crore)
1. Rent200
2. Net Factor income to abroad10
3. National debt interest15
4. Wages and Salaries700
5. Current transfers from government10
6. Undistributed profits20
7. Corporation tax30
8. Interest150
9. Social Security Contributions by employers100
10. Net domestic product accruing to government250
11. Net Current transfers to rest of the world5
12. Dividend50

[CBSE AI 2015]

Solution

Compensation of Employees (COE) = Wages and Salaries + Social Security Contributions of employers

COE = 700 + 100 = 800

Profit = Corporate tax + Dividend + Undistributed Profits

Profit = 30 + 50 + 20 = 100

NDP at FC = COE + Mixed Income + Rent + Interest + Profit

NDP at FC = 800 + 0 + 200 + 150 + 100

NDP at FC = 1250

NNP at FC = NDP at FC – Net Factor Income to abroad

NNP at FC = 1250 – 10

NNP at FC = ₹ 1240 crore

14. Calculate ‘Gross National Product at Market Price.

Items(₹ in crore)
1. Rent100
2. Net Current transfers to rest of the world30
3. Social Security contributions by employers47
4. Mixed Income600
5. Gross Domestic Capital Formation140
6. Royalty20
7. Interest110
8. Compensation of Employees500
9. Net Domestic Capital Formation120
10. Net Factor income from abroad– 10
11. Net Indirect tax150
12. profit200

[CBSE DELHI 2015]

Solution

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

NDP at FC = 500 + 600 + 100 + 20 + 110 + 200

NDP at FC = 1530

GNP at MP = NDP at FC + Depreciation (Gross Domestic Capital Formation – Net Domestic Capital Formation) + Net Factor income from abroad + Net Indirect tax

GNP at MP = 1530 + (140 – 120) + ( – 10 ) + 150

GNP at MP = ₹ 1690 crore

15. Calculate Net Domestic Product at Market Price from the following.

Items(₹ in crore)
1. Income from domestic product accruing to government120
2. Wages and Salaries400
3. National Debt Interest60
4. Profit200
5. Net Factor income to abroad– 20
6. Rent100
7. Current transfers from government30
8. Interest150
9. Social Security contribution by employers50
10. Net indirect tax70
11. Net current transfers to abroad– 10

[CBSE F 2014]

Solution

NDP at FC = COE (Wages & Salaries + Social Security contribution of employers) + Mixed Income + Rent + Interest + Profit

NDP at FC = ( 400 + 50 ) + 0 + 100 + 150 + 200

NDP at FC = 900

NDP at MP = NDP at FC + Net Indirect tax

NDP at MP = 900 + 70

NDP at MP = ₹ 970 crore

16. Calculate ‘Gross National Product at Market Price’ from the following.

Items(₹ in crore)
1. Net factor income to abroad– 10
2. Net current transfers to abroad20
3. Wages and Salaries400
4. Corporation tax50
5. Profit after corporation tax150
6. Social Security contributions by employers50
7. Rent100
8. Interset70
9. Mixed income of self employed300
10. Net Indirect tax140
11. Consumption of fixed capital80

[CBSE F 2014]

Solution:-

NDP at FC = COE (Wages & Salaries + Social Security contribution of employers) + Mixed Income + Rent + Interest + Profit (Corporation tax + profit after corporation tax)

NDP at FC = (400 + 50) + 300 + 100 + 70 + (50 + 150)

NDP at FC = 1120

GNP at MP = NDP at FC + Consumption of fixed capital – Net factor income to abroad + Net Indirect tax

GNP at MP = 1120 + 80 – (- 10) + 140

GNP at MP = ₹ 1350 crore

17. Calculate ‘Net National Product at Factor Cost from the following:-

Items(₹ in crore)
1. Social Security contributions by employees90
2. Wages and Salaries800
3. Net Current transfers to abraod– 30
4. Rent and Royalty300
5. net factor income to abraod50
6. Social security contributions by employers100
7. Profit500
8. Interest400
9. Consumption of fixed capital200
10. Net indirect tax250

[CBSE AI 2014]

Solution:-

NDP at FC = COE (Wages & Salaries + Social Security contribution of employers) + Mixed Income + Rent and Royalty + Interest + Profit

NDP at FC = 800 + 100 + 0 + 300 + 400 + 500

NDP at FC = 2100

NNP at FC = NDP at FC – Net factor income to abraod

NNP at FC = 2100 – 50

NNP at FC = ₹ 2050 crore

18. Calculate ‘Net National Product at Factor Cost from the following:-

Items(₹ in crore)
1. National debt interest60
2. Wages and salaries600
3. Net current transfers to abroad20
4. Rent200
5. Transfer payments by government70
6. Interest300
7. Net domestic product at factor cost accruing to government400
8. Social security contributions by employers100
9. Net factor income paid to abroad50
10. Profits300

[CBSE DELHI 2014]

Solutions:-

NDP at FC = COE (Wages & Salaries + Social Security contribution of employers) + Mixed Income + Rent + Interest + Profit

NDP at FC = (600 + 100) + 0 + 200 + 300 + 300

NDP at FC = 1500

NNP at FC = NDP at FC – Net factor income paid to abroad

NNP at FC = 1500 – 50

NNP at FC = ₹ 1450 crore

19. From the following data, calculate National Income:-

Items(₹ in crore)
1. Profit1500
2. Rent1300
3. Net Indirect taxes350
4. Mixed income of self employed600
5. Compensation of employees3000
6. Reimbursement to the employees for medical expenses300
7. Depreciation200
8. Excess of factor income to rest of the world over factor income from rest of the world50
9. Excess of imports over exports40
10. Interest1100

Solution:-

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

NDP at FC = 3000 + 600 + 1300 + 1100 + 1500

NDP at FC = 7500

NNP at FC = NDP at FC + NFIA

NNP at FC = 7500 + ( – 50)

NNP at FC = ₹ 7450 crore

20. Calculate Operating Surplus from the following data:-

Items(₹ in crore)
1. Compensation of employees300
2. Indirect taxes200
3. Consumption of fixed Capital100
4. Subsidies50
5. Gross Domestic Product at market price600

Solution:-

NDP at FC = GDP at MP – consumption of fixed capital – (indirect taxes – subsidies)

NDP at FC = 600 – 100 – (200 – 50)

NDP at FC = 350

NDP at FC = Compensation of employees + Mixed Income + Operating Suplus

350 = 300 + 0 + Operating Surplus

Operating surplus = ₹ 50 crore

21. The following information is available for an economy, On the basis of this information using income method, calculate: a) Domestic Income, and b) National Income

Items(₹ in crore)
1. Wages10,000
2. Rent5,000
3. Interest400
4. Dividend3,000
5. Mixed Income400
6. Undistributed profit200
7. Social Security Contribution400
8. Corporate profit tax400
9. Net factor income from abroad1000

Solution:-

Domestic Income (NDP at FC) = Wages + Social Security Contribution + Mixed Income + Rent + Interest + Corporate Profit tax + Dividend + Undistributed profit

Domestic Income = 10000 + 400 + 400 + 5000 + 400 + 400 + 3000 + 200

Domestic Income = ₹ 19800 crore

National Income = NDP at FC + net factor income from abroad

National Income (NNP at FC) = 19800 + 1000

National Income = ₹ 20800 crore

22. Given the following data and using income method calculate:-

a) Net Domestic Income
b) Gross Domestic Income
c) Net National Income
d) Net National Product at Market Price

Items(₹ in crore)
1. Indirect taxes9000
2. Subsidies1800
3. Depreciation1700
4. Mixed Income of self employed28000
5. Operating surplus10000
6. Net factor income from abroad– 300
7. Compensation of employees24000

Solution:-

Net Domestic Income (NDP at FC) = Compensation of employees + Mixed income of self employed + Operating Surplus

Net Domestic Income = 24000 + 28000 + 10000

Net Domestic Income = ₹ 62000 crore

Gross Domestic Income (GDP at FC) = NDP at FC + Depreciation

Gross Domestic Income = 62000 + 1700

Gross Domestic Income = ₹ 63700 crore

Net National Income (NNP at FC) = NDP at FC + Net Factor income from abroad

Net National Income = 62000 – 300

Net National Income = ₹ 61700 crore

Net National Product at Market Price (NNP at MP) = NNP at FC + Indirect taxes – subsidies

Net National Product at Market Price = 61700 + 9000 – 1800

Net National Product at Market Price = ₹ 68900 crore

23. Calculate the national income from the following data:-

Items(₹ in crore)
1. Mixed income of self employed200
2. Old age pension20
3. Dividends100
4. Operating surplus900
5. Wages and Salaries500
6. Profits400
7. Employer’s contribution to social security schemes50
8. Net factor income from abroad– 10
9. Consumption of fixed capital50
10. Net indirect tax50

Solution:-

Compensation of Employee = Wages and Salaries + Employer’s contribution to social security schemes

Compensation of Employee = 500 + 500 = 550

Net Domestic Income (NDP at FC) = Compensation of Employee + Mixed Income + Operating surplus

NDP at FC = 550 + 200 + 900

NDP at FC = ₹ 1650

National Income (NNP at FC) = NDP at FC + Net factor income from abroad

National Income = 1650 – 10

National Income = ₹ 1640 crore

24. Calculate National Income from the following data:-

Items(₹ in crore)
1. Rent80
2. Interest100
3. Profits210
4. Tax on Profits30
5. Employee’s contribution to social security schemes25
6. Mixed income of self employed250
7. Net indirect tax60
8. Employer’s contributions to social security schemes50
9. Compensation of employees500
10. Net factor income from abroad– 20

Solution:-

Domestic Income (NDP at FC) = Compensation of Employees + Mixed income of self employed + Rent + Interest + Profits

NDP at FC = 500 + 250 + 80 + 100 + 210

NDP at FC = ₹ 1140

National Income (NNP at FC) = NDP at FC + Net factor income from abroad

National Income = 1140 – 20

National Income = ₹ 1120 crore

25. Calculate National Income from the following data:-

Items(₹ in crore)
1. Compensation of employees400
2. Profits200
3. Rent150
4. Interest100
5. Dividends120
6. Employer’s contributions to social security schemes40
7. Mixed income of self employed500
8. Direct tax100
9. Net factor income from abroad– 50

Solution:-

NDP at FC = Compensation of employees + Mixed income of self employed + Rent + Interest + Profits

NDP at FC = 400 + 500 + 150 + 100 + 200

NDP at FC = 1350

National Income (NNP at FC) = NDP at FC + Net factor income from abroad

National Income = 1350 – 50

National Income = ₹ 1300 crore

26. From the following data, calculate Gross National Product at Market prices:-

Items(₹ in crore)
1. Undistributed profits of private corporate enterprises200
2. Rent 400
3. Interest200
4. Profits600
5. Dividends300
6. Wages and Salaries225
7. Net exports– 20
8. Net indirect tax70
9. Consumption of fixed capital30
10. Compensation of employees250
11. Mixed income of self employed100
12. Net factor income from abroad– 10

Solution:-

Domestic Income (NDP at FC) = Compensation of employees + Mixed income of self employed + Rent + Interest + Profits

NDP at FC = 250 + 100 + 400 + 200 + 600

NDP at FC = ₹ 1550

Gross National Product at Market Price (GNP at MP) = NDP at FC + consumption of fixed capital + Net factor income from abroad + Net indirect tax

GNP at MP = 1550 + 30 – 10 + 70

GNP at MP = ₹ 1640 crore

27. Calculate national income from the following data:

Items(₹ in crore)
1. Interest50
2. Corporate tax10
3. Net indirect tax40
4. Rent20
5. Dividends paid30
6. Compensation of employees200
7. Consumption of fixed capital15
8. Undistributed profits5
9. Net factor income received from abroad– 5
10. Royalty10

Solution:-

Profits = Corporate tax + Dividends paid + Undistributed profits

Profits = 10 + 30 + 5

Profits = 45

NDP at FC = Compensation of employees + Mixed Income + Rent + Royalty + Interest + Profits

NDP at FC = 200 + 0 + 20 + 10 + 50 + 45

NDP at FC = 325

NNP at FC = NDP at FC + Net factor income received from abroad

NNP at FC = 325 – 5

NNP at FC = ₹ 320

28. Calculate GDP at MP and GNP at FC from the following data:-

Items(₹ in crore)
1. Operating Surplus700
2. Profit100
3. Wages and Salaries (cash)1000
4. Interest200
5. Consumption of fixed capital50
6. Net factor income from abroad– 10
7. Value of benefits in kind provided to employees200
8. Goods and service tax150
9. Subsidies10

Solution:-

Compensation of employees = Wages and Salaries + value of benefits in kind provided to employees

Compensation of employees = 1000 + 200 = 1200

NDP at FC = Compensation of employees + Mixed Income + Operating Surplus

NDP at FC = 1200 + 0 + 700

NDP at FC = 1900

GDP at MP = NDP at FC + consumption of fixed capital + goods and service tax – subsidies

GDP at MP = 1900 + 50 + 150 – 10

GDP at MP = ₹ 2090 crore

GNP at FC = NDP at FC + consumption of fixed capital + Net factor income from abroad

GNP at FC = 1900 + 50 – 10

GNP at FC = ₹ 1940 crore

29. Calculate GNP at MP:-

Items(₹ in crore)
1. Mixed income of the self employed800
2. Consumption of fixed capital50
3. Wage and salaries700
4. Compensation of employees from abroad20
5. Rent on land200
6. Royalty of sub soil assets30
7. Interest paid by production units150
8. Interest paid by consumers100
9. Profits300
10. Social security contribution by employers100
11. Property and entrepreneurial income from abroad– 20
12. Net indirect tax200

Solution:-

Compensation of Employees (COE):- Wages and Salaries + Employers contribution to social security schemes

COE = 700 + 100 = ₹ 800

NDP at FC = COE + Mixed Income + Rent + Royalty + Interest + Profits

NDP at FC = 800 + 800 + 200 + 30 + 150 + 300

NDP at FC = ₹ 2280

NFIA = compensation of employees from abroad + Property and entrepreneurial income from abroad

NFIA = 20 – 20 = ₹ 0

GNP at MP = NDP at FC + consumption of fixed capital + NFIA + Net indirect tax

GNP at MP = 2280 + 50 + 0 + 200

GNP at MP = ₹ 2530

Note:- Interest paid by consumers is not included in income as it does not lead to value addition.

30. Calculate GDP at MP

Items(₹ in crore)
1. Dividend paid20
2. Depreciation25
3. Rent75
4. Interest125
5. Undistributed profits50
6. Subsidies10
7. Goods and services tax (GST)40
8. Corporation tax30
9. Mixed Income500
10. Net factor income from abroad– 20
11. Compensation of employees300

Solution:-

Profits = corporation tax + Dividend Paid + Undistributed profits

Profits = 30 + 20 + 50 = ₹ 100

NDP at FC = compensation of employees + Mixed Income + Rent + Interest + Profits

NDP at FC = 300 + 500 + 75 + 125 + 100

NDP at FC = ₹ 1100

GDP at MP = NDP at FC + Depreciation + Net Indirect tax (Goods and services tax – subsidies)

GDP at MP = 1100 + 25 + (40 – 10)

GDP at MP = ₹ 1155 crore

31. Calculate Operating Surplus

Items(₹ in crore)
1. GNP at market price1000
2. Wages and Salaries400
3. Consumption of fixed capital50
4. Net factor income to abroad– 10
5. GST100
6. Social security contributions by employees60
7. Subsidies20
8. Mixed income of the self employed200
9. Interest40
10. Social security contribution by employers100

Solution:-

NDP at FC = GNP at MP – consumption of fixed capital + Net factor income to abroad – Indirect tax (GST – Subsidies)

NDP at FC = 1000 – 50 – 10 – (100 – 20)

NDP at FC = ₹ 860

Compensation of employee = Wages and Salaries + Social security contribution of employers

Compensation of employee = 400 + 100

Compensation of employee = 500

NDP at FC = compensation of employees + Mixed Income + Operating Surplus

910 = 500 + 200 + Operating Surplus

Operating Surplus = 860 – 700

Operating Surplus = ₹ 160 crore

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