Q- Which of the following statements is-are correct regarding Personal Disposable Income PDI-1- It is the part of the aggregate income of a household- available either for consumption or savings-2- It is similar to personal income-3- It is calculated by deducting Personal tax payments and Non-tax payments of households-Select the correct answer using the codes given below

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Standard XII

Accountancy

Classifying Items of Financial Statements

Q. Which of t...

Question

Q. Which of the following statements is/are correct regarding Personal Disposable Income (PDI)?

Select the correct answer using the codes given below

1 and 2 only

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2 and 3 only

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1 and 3 only

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All of the above

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Solution

The correct option is C
1 and 3 only
Explanation:

Statement 1 and 3 are correct: PDI is one of the parts of aggregate income of households. It is calculated by deducting Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from Personal Income (PI). This income is available with households for either consumption or savings.

Statement 2 is incorrect: As mentioned above It is calculated by deducting Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from Personal Income (PI) thus it is not similar to PI.

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Similar questions

Net National Product at Factor Cost of a particular country in a year is Rs. 1900 crores. There are no interest payments made by the households to the firms/government to the households. The personal disposable income of the households is 1200 crores. The personal income taxes paid by them is 600 crores and the value of retained earnings of the firms and government is valued at 200 crores. What is the value of transfer payments made by the government and firms to the households?

From the following data, calculate Personal Income and Personal Disposable Income.

		Rs (crore)
(a)	Net Domestic Product at factor cost	8,000
(b)	Net Factor Income from abroad	200
(c)	Undisbursed Profit	1,000
(d)	Corporate Tax	500
(e)	Interest Received by Households	1,500
(f)	Interest Paid by Households	1,200
(g)	Transfer Income	300
(h)	Personal Tax	500

Q. ______ is the personal income minus personal income tax and miscellaneous payments to government.

Transfer payments are ______ income to get personal disposable income.

From the following data calculate personal disposable income:

$\begin{matrix} (Rs in Crores) (i) & Net domestic product at factor cost accruing to private sector & 800 (ii) & National Debt interest & 50 (iii) & Current transfers from government & 70 (iv) & Savings of private corporate sector & 200 (v) & Corporation tax & 40 (vi) & Direct taxes paid by households & 30 (vii) & Depreciation & 60 (viii) & Net factor income from abroad & 20 (ix) & Net current transfers to abroad & (-) 10 \end{matrix}$

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Q. Which of the following statements is/are correct regarding Personal Disposable Income (PDI)? Select the correct answer using the codes given below

Q. Which of the following statements is/are correct regarding Personal Disposable Income (PDI)?

Select the correct answer using the codes given below