national income revision and of formulas

how to calculate national income.

1. REVISION OF N.I. ACCOUNTING By Dr. S. Sarkar (A.P. I-KSOL) With students of B.A.LL.B 2020-25 Batch OSD

2. METHOD TO CALCULATE N.I. ( )   Expenditure method( Income method Value added method ( INCASE IN THE ECONOMY ONLY ONE FIRM IS ACTIVE)   OSD

3. Expenditure method: Private/ personal consumption expenditure Change in stock= new-old stock or closing-opening stock NX= X-M Where X= export M= import +   OSD

4. Income method =Compensation to employees = salary/Wage/remuneration + wage in kind + employer’s benefit in the form of social security scheme = income of self employed people OS=Rent+ Royalty+ Interest+ profit profit/corporate profits= corporate profits tax + dividend+ retained or undistributed profit retained or undistributed profit= savings of corporate sector   OSD

5. Value added method = sales + change in stock Sales=domestic sales+ export /purchase of raw materials=Domestic purchase + Import   OSD

6. Conversion Rules N G FC 3. National=Domestic + NFIFA(-NFPTA or NFITA) Domestic=National - NFIFA(+NFPTA or NFITA) NFIFA= FIFA-FITA   OSD

7. Calculation of Private income, Personal income and Personal Disposable income Private income ( Pvt. I.)= (- )+ Interest on public debt   OSD

8. P.I.= Pvt. I. – IEBNR IEBNR= retained profit of corporate sector+ corporate profit tax IEBNR= corporate profit- dividend PDI=P.I.-personal tax-IRBNE IRBNE=Miscellaneous receipt/transfer payment by Government OSD