Check sibling questions

a) From the following data calculate the value of Domestic Income:

       S. No.             ITEMS Amount(in crores) 
         i) Compensation of Employees           2000
        ii) Rent and Interest            800
       iii) Indirect Taxes            120
       iv) Corporate Tax            460
       v) Consumption of Fixed Capital            100
      vi) Subsidies              20
     vii) Dividend            940
     viii) Undistributed Profits            300
     ix) Net Factor Income from abroad            150
      x) Mixed Income of Self Employed            200

(3 Marks)


a) Domestic Income = NDPfc

NDPfc = Compensation of Employees + Rent and Interest + Corporate Tax + Dividend + Undistributed Profits + Mixed Income of Self Employed

Domestic Income ([email protected]) =(i)+(ii)+(iv)+(vii)+(viii)+(x)


NDPfc=₹4,700 crore

b) Distinguish between ‘Value of Output’ and ‘Value Added’.

(2 Marks)


Value of output is the estimated money value of all the goods and services, inclusive of change in stock and production for self-consumption. Whereas,

Value added is the excess of value of output over the value of intermediate consumption.



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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo