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Solved Value Added Method Worksheet

The document provides a series of examples illustrating the calculation of Gross Value Added (GVA) and Net Value Added (NVA) at both factor cost and market price. It details various formulas used to derive these values from outputs, intermediate consumption, depreciation, and indirect taxes. Each example demonstrates different scenarios for calculating value added in a business context.

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78 views2 pages

Solved Value Added Method Worksheet

The document provides a series of examples illustrating the calculation of Gross Value Added (GVA) and Net Value Added (NVA) at both factor cost and market price. It details various formulas used to derive these values from outputs, intermediate consumption, depreciation, and indirect taxes. Each example demonstrates different scenarios for calculating value added in a business context.

Uploaded by

rajahir1009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Solutions - Value Added Method Worksheet

Example 1

Gross Value Added at Factor Cost (GVAFc) = Output - Intermediate Consumption

Output = Domestic Sales + Exports + Change in Stock = 3000 + 500 - 100 = 3400

GVAFc = 3400 - 2000 = Rs.1400 crores

Example 6

Net Value Added at Factor Cost (NVAFc) = Value of Output - Intermediate Costs - Depreciation -

Indirect Taxes + Change in Stock

Output = Price × Quantity = 25 × 1000 = 25000

NVAFc = 25000 - 7000 - 1000 - 5000 - 500 = Rs.11000

Example 7

Value of Output = Sales + Closing Stock - Opening Stock = 90 + 15 - 25 = 80

Net Value Added at Market Price = Value of Output - Intermediate Consumption - Depreciation +

Net Indirect Taxes

= 80 - 40 - 10 + (15 - 5) = 80 - 40 - 10 + 10 = Rs.40

Example 8

Firm A: Value Added = Domestic Sales + Exports - Purchases = 4000 + 1000 - 1200 = Rs.3800

Firm B: Value Added = Sales - Purchases = 2940 - 1800 = Rs.1140

Example 9

Gross Value Added at Factor Cost = Sales + Rent + Change in Stock + Subsidies - Raw Materials =

180 + 5 + 15 + 10 - 100 = Rs.110 crores


Example 10

Intermediate Consumption = Output - Net Value Added at FC - Sales Tax - Subsidies = 200 - 80 -

15 - 5 = Rs.100 lakhs

Example 11

Value of Output = Sales + Closing Stock - Opening Stock = 500 + 20 - 30 = 490

GVAFc = Output - Intermediate Consumption = 490 - 300 = Rs.190 thousands

Example 12

Sales = Net VAFC + Intermediate Consumption + Indirect Tax + Depreciation - Change in Stocks

= 300 + 200 + 20 + 30 + 50 = Rs.600 lakhs

Example 13

Net Value Added at Market Price = Sales + Change in Stock - Intermediate Consumption -

Depreciation - Net Indirect Taxes

= 700 + 40 - 400 - 80 - 100 = Rs.160

Example 14

Net Value Added at Market Price = Sales + Change in Stocks - Intermediate Consumption -

Depreciation - Net Indirect Taxes

= 300 - 10 - 150 - 20 - 30 = Rs.90

Example 15

Gross Value Added at Market Price = Domestic Sales + Exports + Change in Stock - Intermediate

Consumption

= 200 + 10 - 10 - 120 = Rs.80 lakhs

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