Let firm A produce goods worth ₹500 and its intermediate cost (IC) be ₹200 and these goods are sold to firm B Then let Firm B sell these goods to Firm C for ₹500 and Firm C sells these goods for ₹1000 to the final consumer So as per value added method National income should be (500-200) + (700-500) + (1000-700) = 800 But as per Expenditure Method it should be ₹1000 as the final consumption expenditure is worth ₹1000 So why is difference in finding the answer using different methods????