the following information ascertain the amount of insurance for the year 2017-18 to be debited to profit & Loss Account Insurance (including Rs 4800 for year ended 30 09 2015) -8000
Answers
1. Income Method GNPFC = Compensation of employees + Rent + Interest + Undistributed Profits + Dividend + Net
Factor Income from Abroad + Consumption of fixed capital = 1850 + (400 +500 +900 + 200) + (-) 50+ 100 = 3900
CRORE Note: o GNPFC = NNPFC + Consumption of fixed capital o NNPFC = Compensation of employees + Rent +
Interest + Undistributed Profits + Dividend + Net Factor Income from Abroad o Compensation of employees is
income from work which includes wages and salaries in kind and cash, and contribution to social securities
ii. Expenditure Method GNPFC = GNPMP - Net Indirect Taxes Private Final consumption Expenditure + (Net
Domestic capital formation + consumption of fixed capital) + Govt. Final consumption Expenditure + Net Exports +
Net Factor Income from Abroad - Net Indirect Taxes = 1100 +2600 + (500 +100) + (-) 100 + (-)50 – 250 = 3900
CRORE