Calculate the value of operating surplus from following:
Wages and Salaries Rs 2,000
Rent Rs 1,000
Interest Rs 500
Employers contribution in social security scheme Rs 200
Royalty Rs 300
Profits Rs 200.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 2,000
The Operating Surplus is the sum of income from property and entrepreneurship. It is calculated by adding Rent, Royalty, Interest, and Profits. The other items, Wages and Salaries and Employers' contribution in social security scheme, are components of Compensation of Employees and are excluded from Operating Surplus.
The items in the list that constitute the Operating Surplus are:
-
Rent: Rs 1,000
-
Interest: Rs 500
-
Royalty: Rs 300
-
Profits: Rs 200
- Total: 2,000