Question

Calculate operating surplus from the following data:

	(₹ in lakh)
(i) Gross value added at market price	120
(ii) Depreciation	10
(iii) Wages and salaries (compensation of employees)	30
(iv) Net indirect taxes	20
(v) Mixed income of the self-employed	15

Answer 1

To estimate the operating surplus, we apply the formula:

Operating Surplus = Net Value Added at Factor Cost (NVA at FC) − Compensation of Employees − Mixed Income

Given Data (₹ in lakh):

Gross Value Added at Market Price = ₹ 120

Net Indirect Taxes = ₹ 20

Compensation of Employees (Wages and Salaries) = ₹ 30

Mixed Income of self-employed = ₹ 15

Depreciation = ₹ 10

NVA at MP = Gross Value Added at MP − Depreciation

= 120 − 10 

= ₹ 110 lakh

NVA at FC = NVA at MP − Net Indirect Taxes

=110 − 20

= ₹ 90 lakh

Formula for operating surplus:

Operating Surplus = Net Value Added at Factor Cost (NVA at FC) − Compensation of Employees − Mixed Income

= 90 − 30 − 15

= 90 − 55

= ₹ 45 lakh