Calculate national income by income and expenditure method

This slide share contains numerical question from CBSE 2004 Foreign SET (Solved)

1. Calculate national Income by Income and expenditure method CBSE Foreign 2004 Items Amount Rs Crore 1 Compensation to employees 1200 2 Rent 300 3 Interest 150 4 Consumption of fixed assets 150 5 Mixed income of self employed 130 6 Private final consumption 1200 7 Net export -30 8 NFIA 20 9 Net domestic capital formation 500 10 Government final consumption expenditure 800 11 Profit 500 12 Net Indirect taxes 190

2. Using Income method COE+OS+MI Compensation to employees = 1200 Operating surplus ( Rent+Interest+Profit ) (Rent 300+Interest 150 + Profit 500) 950 Mixed income = 130 NFIA= 20 Total= 2300

3. Expenditure Method C+I+G+NX C=Private final consumption = 1200 I=GDCF= 500 G=Govt final consumption Exp= 800 Less: NX (-) 30 2470-D+NFIA-NIT 2470-( +20-190)=2490-190= 2300 Deprecation will not be considered because domestic capital formation is given in NET it means depreciation has already been adjusted.