VALUE ADDED METHOD

1. On the basis of the following data about an economy which consists of only two firms, find out:

a) Value Added by firm A and B, and

b) Gross Value Added or Gross Domestic Product at Factor Cost.

Items

Items ₹ in lakhs

i) Sales by firm A 100

ii) Purchases from firm B by Firm A 40

iii) Purchases from firm A by Firm B 60

iv) Sales by firm B 200

v) Closing Stock of Firm A 20

vi) Closing Stock of Firm B 35

vii) Opening Stock of Firm A 25

viii) Opening Stock of Firm B 45

xi) Indirect taxes paid by both firms 30

2. Calculate:--

a) Gross Value Added at Market Price, and

b) National Income from the following data.

Items

(i) Value of Output:

a) Primary Sector

b) Secondary Sector

c) Tertiary Sector

(ii) Value of Intermediate inputs purchased by:

d) Primary Sector

e) Secondary Sector

f) Tertiary Sector

(iii) Indirect taxes paid by all sectors

(iv) Consumption of fixed capital of all sectors

(v) Factor income received by the residents from rest of the world

(vi) Factor income paid to non-residents

(vii) Subsidies received by all sectors

3. Find Gross Value Added at Market Price:-

Items (₹ in lakh)

i) Depreciation 20

ii) Domestic Sales 200

iii) Net Change in Stocks (-) 10

iv) Exports 10

v) Single use producer goods 120

4. Find Net Value Added at Market Price:

Items (₹ in lakh)

i) Fixed capital good with a life span of 5 years 15

ii) Raw Materials 6

iii) Sales 25

iv) Net Change in Stock (-) 2

v) Taxes on production 1
 VALUE ADDED METHOD

5. Find Net Value Added at Factor Cost:-

Items (₹ in lakh)

i) Durable use producer goods with a life span of 10 years 10

ii) Single use producer goods 5

iii) Sales 20

iv) Unsold output produced during the year 2

v) Taxes on production 1

6. Calculate the Net Value Added at Factor Cost:

S.N Items (₹ in lakh)

i) Goods and Service tax 25

ii) Consumption of fixed Capital 5

iii) Closing Stock 10

iv) Corporate tax 15

v) Opening stock 20

vi) Sales 540

vii) Purchase of raw materials 140

7. Calculate the Gross Value Added at Market Price

S.N Items (₹ in lakh)

i) Goods and service tax 40

ii) Consumption of fixed capital 15

iii) Closing stock 20

iv) Sales 700

v) Subsidy 5

vi) Intermediate consumption 400

vii) Opening Stock 10

8. Calculate gross value added at market price.

S.N Items (₹ lakh)

i) Goods and service tax 30

ii) Sales 800

iii) Depreciation 50

iv) Net Change in stocks – 40

v) Purchase of raw materials 360

vi) Corporate tax 10

9. From the following data, calculate value added by firm X and by firm Y:-

S.N Items (₹ lakh)

i) Closing stock of firm X 20

ii) Closing stock of firm Y 15

iii) Opening stock of firm Y 10

iv) Opening stock of firm X 5

v) Sales by firm X 300

vi) Purchases by firm X from firm Y 100

vii) Purchases by firm Y from firm X 80

viii) Sales by firm Y 250

ix) Import of raw material by firm X 50

x) Exports by firm Y 30

10. Calculate Value Added by Firms A and B from the following data:-
 VALUE ADDED METHOD
S.N Items (₹ lak

i) Purchases by Firm B from Firm A 40

ii) Sales by Firm B 80

iii) Imports by Firm B 10

iv) Rent paid by Firm B 5

v) Opening stock of Firm B 15

vi) Closing Stock of Firm B 20

vii) Purchases by Firm A from Firm B 20

viii) Closing Stock of Firm A 20

ix) Opening Stock of Firm A 10

11. Calculate net value added at factor cost:-

S.N Items (₹ Crore)

i) Subsidies 5

ii) Sales 500

iii) Intermediate Consumption 200

iv) Closing Stock 40

v) Consumption of fixed capital 60

vi) Indirect tax 30

vii) Opening Stock 50

12. From the following information about firm X, calculate gross value added by it.

S.N Items (₹ lakh)

i) Domestic Sales 300

ii) Exports 100

iii) Production for Self Consumption 50

iv) Purchases from firm A 110

v) Purchases from firm B 70

vi) Imports of raw materials 30

vii) Change in Stock 60

13. From the following data, find out value added by firm X:

S.N Items (₹ lakh)

i) Sales by Firm Y to Firm X 400

ii) Sales by Firm X to households 500

iii) Purchases by firm Z from Firm X 300

iv) Opening stock of firm X 25

v) Closing stock of firm X 75

14. Calculate (a) Value of output and (b) Net Value added at factor cost from the following data:

S.N Items (₹ lakh)

i) Goods and services tax 100

ii) Sales 1000

iii) Operating Surplus 60

iv) Opening Stock 200

v) Consumption of fixed capital 50

vi) Closing Stock 200

vii) Intermediate cost 600

viii) Subsidies 40

14. From the data of a firm given alongside, find out net value added at factor cost:

S.N Items

i) Total Sales

ii) Purchase of raw materials and other inputs

 VALUE ADDED METHOD
iii) Indirect tax

iv) Consumption of fixed capital

15. Given the following data, find the Net Value Added at Factor Cost by Farmer producing wheat.

S.N Items (₹ in crore)

i) Sale of wheat by the farmer in the local market 6,80,000

ii) Purchase of a tracter 5,00,000

iii) Procurement of wheat by the government from the farmer 20,000

iv) Consumption of wheat by the farming family during the year 5,000

v) Subsidy 2,000

vi) Expenditure on the maintenance of existing capital stock 10,000

16. Calculate Net Value Added at Factor Cost from the following data:-

S.N Items (₹ in crore)

i) Purchase of Machinery to be used in the production unit 100

ii) Sales 200

iii) Intermediate Costs 90

iv) Indirect taxes 12

v) Change in stock 10

vi) Excise Duty 6

vii) Stock of Raw Material 5

17. From the following data relating to a firm, calculate its Net Value Added at Factor Cost:

S.N Items (₹ in lakh)

i) Subsidy 40

ii) Sales 800

iii) Depreciation 30

iv) Exports 100

v) Closing Stock 20

vi) Opening Stock 50

vii) Intermediate purchases 500

viii) Purchase of Machinery for own use 200

ix) Import of raw material 60

18. Calculate Gross Domestic Product at Market Price by Production Method.

S.N Items ₹ crore

Intermediate consumption of:

a) Primary sector 500

i)
b) Secondary Sector 400

c) Tertiary Sector 300

Value of Output

a) Primary Sector 1000

ii)
b) Secondary Sector 900

c) Tertiary Sector 700

ii) Rent 10

ix) Emoluments of Employees 400

v) Mixed Income 650

vi) Operating Surplus 300

vii) Net Factor Income from abroad – 20

viii) Interest 5

ix) Consumption of fixed capital 40

x) Net Indirect tax 10

19. Calculate Gross Domestic Product at market price from the following data:-
 VALUE ADDED METHOD
S.N Items (₹ lakh)

Net Value added at market price by:

a) Primary Sector 700

i)
b) Secondary Sector 1000

c) Tertiary Sector 1000

ii) Net Exports – 10

iii) Net Indirect tax 100

Value of Intermediate consumption in:

a) Primary Sector 200

iv)
b) Secondary Sector 300

c) Tertiary Sector 300

Consumption of fixed capital in:

a) Primary Sector 20
v)
b) Secondary Sector 50

c) Tertiary Sector 30

20. Calculate Net Value Added at factor cost from the following data:0

Items (₹ in crore)

1. Purchase of machinery to be used in the production unit. 100

2. Sales 200

3. Intermediate costs 90

4. Indirect taxes 12

5. Changes in Stock 10

6. Excise duty 6

7. Stock of Raw Material 5

21. Find NVA at FC from the following.

Items (₹ in crore)

1. Sales 800

2. Taxes on production 50

3. Depreciation 70

4. Opening Stock 100

5. Closing Stock 80

6. Intermediate cost 200

22. Calculate GVA at MP from the following:-

Items (₹ in crore)

1. Purchase by Firm A from Firm B 100

2. Purchase by Firm B from Firm A 150

3. Sales by Firm A 200

4. Sales by Firm B 300

5. Exports by Firm B 30

6. Change in stock of Firm A – 20

7. Change in stock of Firm B 10

23. Calculate national income from the following data. Assume that there are only two properties, firm A and Firm B

in the economy:

Items (₹ in crore)

1. Purchases of materials, etc. by Firm A from Firm B 20

2. Purchases of materials, etc. by Firm B from Firm A 30

3. Value of output produced by Firm A 100

4. Value of output produced by Firm B 80

5. Payment of indirect tax by Firm A 10

6. Payment of indirect tax by Firm B 5

7. Consumption of fixed capital by Firm B 5

 VALUE ADDED METHOD
8. Consumption of fixed capital by Firm A 10

9. net change in stocks of Firm A – 7

10. Net change in stock of Firm B 7

11. Net factor income from abroad –5

24. Calculate GDP at MP and NDP at FC from the following data. Assume that there are only two sectors A and B in

the economy.

Items (₹ in crore)

1. Closing stock of sector A 20

2. Opening stock of sector B 5

3. Opening stock of sector A 30

4. Closing stock of sector B 15

5. Sales by sector B 200

6. Sales by sector A 150

7. Goods and Services tax paid by section A 15

8. Consumption of fixed capital by sector B 10

9. Consumption of fixed capital by sector A 10

10. Subsidies to sector B 5

11. Intermediate consumption by sector A 70

12. Intermediate consumption by sector B 60

13. Net factor income from abroad 10

25. From the following data, calculate “gross value added at factor cost.”

Items (₹ in crore)

1. Sales 180

2. Rent 5

3. Subsidies 10

4. Change in stock 15

5. Purchase of raw materials 100

6. Profits 25

26. From the following data, calculate “gross value added at factor cost.”

Items (₹ in crore)

1. Net indirect tax 20

2. Purchase of intermediate products 120

3. Purchase of machines 3oo

4. Sales 250

5. Consumption of fixed capital 20

6. Change in stock 30

27. Calculate Net Value added at Market Price from the following data:-

Items (₹ in crore)

1. Depreciation 5

2. Sales 100

3. Opening stock 20

4. Intermediate consumption 70

5. Excise Duty 10

6. Change in stock – 10

28. Calculate Gross Value Added at Factor Cost:-

Items (₹ in crore)

1. Units of output sold (units) 1000

2. Price per unit of output 30

3. Depreciation 1000
 VALUE ADDED METHOD
4. Intermediate cost 12000

5. Closing stock 3000

6. Opening stock 2000

7. Excise 2500

8. Sales Tax 3500