Question : If the national income is INR 12,000 crore, compensation of employees is INR 6,000 crore, wages and salaries in cash is INR 2,500 crore, royalty is INR 600 crore, corporate tax is INR 1,200 crore, and dividend is INR 300 crore, what is the profit in this case?
Option 1: INR 1,400 crore
Option 2: INR 2,800 crore
Option 3: INR 3,000 crore
Option 4: INR 3,500 crore
Correct Answer: INR 1,400 crore
Solution : The correct answer is (A) INR 1,400 crore
To calculate the profit in this case, we need to subtract the compensation of employees, wages and salaries in cash, royalty, corporate tax, and dividend from the national income. Let's perform the calculation:
Profit = National income - Compensation of employees - Wages and salaries in cash - Royalty - Corporate tax - Dividend
National income = INR 12,000 crore
Compensation of employees = INR 6,000 crore
Wages and salaries in cash = INR 2,500 crore
Royalty = INR 600 crore
Corporate tax = INR 1,200 crore
Dividend = INR 300 crore
Substituting the values into the formula:
Profit = INR 12,000 crore - INR 6,000 crore - INR 2,500 crore - INR 600 crore - INR 1,200 crore - INR 300 crore
Profit = INR 1,400 crore
Therefore, the profit in this case is INR 1,400 crore.