50 Important Numerical of Value Added Method (National Income) with solutions class 12 CBSE Board

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Hey, Welcome to Commerce School. Here we are going to solve 50 important Numerical of value added method of National Income with solutions. these numerical are very very important with the point of view of the CBSE Board Examination.

Formula of Value Added Method of National Income

Other Formulas of Sales

  1. Sales = Sales to households + Sales to other firms + Exports
  2. Sales = Sales to households + Production for self consumption + Sales to other firms + Exports
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For more detail understanding you can read below guide on Value added Method

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Must do Numerical of Value Added Method of National Income with solutions (explanations).

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 A100
ii) Purchases from firm B by Firm A40
iii) Purchases from firm A by Firm B60
iv) Sales by firm B200
v) Closing Stock of Firm A20
vi) Closing Stock of Firm B35
vii) Opening Stock of Firm A25
viii) Opening Stock of Firm B45
xi) Indirect taxes paid by both firms30

Answer:-

a)

Value of output of firm A = Sales of Firm A + Change in Stock (Closing Stock – Opening Stock)

Value of output of Firm A = i) + (v – vii)

Value of Output of Firm A = ₹100 + (₹20 – ₹25) = ₹ 95

Value Added by Firm A = Value of output of firm A – Intermediate Consumption of Firm A (Purchases of Firm A from other Firm)

Value Added by Firm A = ₹95 – ₹40 = ₹55 lakh

Value of output of Firm B = Sales of Firm B + Change in Stock (Closing Stock – Opening Stock)

Value of Output of Firm B = iv) + (vi – viii)

Value of Output of Firm B = ₹200 + (₹35 – ₹45) = ₹190

Value Added by Firm B = Value of output of Firm B + Intermediate Consumption of Firm B (Purchases of Firm B from other Firm)

Value Added by Firm B = ₹190 – ₹60 = ₹ 130 lakh

Read this lecture:- What is Intermediate Consumption ultimate Concept Clarity

b)

Gross Domestic Product at Factor Cost (Gross Value Added at FC) = Value Added by Firm A + Value Added by Firm B – Indirect taxes paid by both firms

Gross Domestic Product at FC = ₹55 lakh + ₹130 lakh – ₹30 lakh = ₹155 lakh

Note- 1) Purchase of a firm from another firm is considered as intermediate consumption. 2) Value added by firms A and B implies gross value added at market price.

2. Calculate:

a) Gross Value Added at Market Price, and

b) National Income from the following data.

Items₹ in lakh
(i) Value of Output:
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector
800
200
300
(ii) Value of Intermediate inputs purchased by:
d) Primary Sector
e) Secondary Sector
f) Tertiary Sector
400
100
50
(iii) Indirect taxes paid by all sectors50
(iv) Consumption of fixed capital of all sectors80
(v) Factor income received by the residents from rest of the world10
(vi) Factor income paid to non-residents20
(vii) Subsidies received by all sectors20

Solution:-

a)

Gross Value added at Market Price = Value of Output of all sector – Intermediate consumption of all sector

GVA at MP = a) + b) + c) – (d + e + f)

GVA at MP = ₹800 +₹200 +₹300 – (₹400 + ₹100 + ₹50) = ₹750 lakh

b)

National Income = GVA at MP – Consumption of Fixed Capital – Net Indirect Tax (Indirect Tax – Subsidy) + NFIA (Factor income from abroad – Factor income to abroad)

National Income = ₹750 lakh – ₹80 lakh – (₹50 – ₹20) + (₹10 – ₹20)

National Income = ₹630 lakh

Note:- There are 8 aggregates of National Income. In order to derive different figures, consumption of fixed capital, net indirect tax, and NFIA is adjusted

Watch my lecture over National Income and its related aggregates.

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3. Find Gross Value Added at Market Price:-

Items(₹ in lakh)
i) Depreciation20
ii) Domestic Sales200
iii) Net Change in Stocks(-) 10
iv) Exports10
v) Single use producer goods120

Solutions:-

Sales = Domestic Sales + Exports

Sales – ii) + iv) = ₹200 + ₹10 = ₹210

Change in stock = Net Change in Stocks = (-) 10

Intermediate Consumption = ₹ 120

Gross Value Added at MP = Sales + Change in stock – Intermediate Consumption

GVA at MP = ₹210 + ( – ₹10) – ₹120 = ₹80

Note: Single use producer goods are intermediate consumption

CBSE Delhi – 2016

4. Find Net Value Added at Market Price:

Items(₹ in lakh)
i) Fixed capital good with a life span of 5 years15
ii) Raw Materials6
iii) Sales25
iv) Net Change in Stock(-) 2
v) Taxes on production1

Solution:-

Value of Output = Sales + Change in Stock

Value of Output = iii) + iv) = 25 + ( – 2) = 23

Gross Value Added at MP = Value of Output – Intermediate Consumption

GVA at MP = ₹ 23 – ₹ 6 = ₹ 17

Net Value Added at MP = GVA at MP – Consumption of fixed Capital

Consumption of Fixed Capital = Total value of fixed Capital/life span = 15/5 = ₹ 3 lakh

NVA at MP = ₹ 17 – ₹ 3 = ₹ 14

[CBSE Delhi – 2016]

Further Resources:-

Read Here:- 50+ Numerical of Income Method of National Income (Must Do)

Read Here:- 50+ Numerical of Expenditure Method of National Income (Must Do)

5. Find Net Value Added at Factor Cost:-

Items(₹ in lakh)
i) Durable use producer goods with a life span of 10 years10
ii) Single use producer goods5
iii) Sales20
iv) Unsold output produced during the year2
v) Taxes on production1

Solution:-

Value of Output = Sales + Change in Stock

Value of Output = iii) + iv) = ₹ 20 + ₹ 2 = ₹ 22

GVA at MP = Value of Output – Intermediate Consumption

Intermediate Consumption = Single use producer goods = ₹ 5

GVA at MP = ₹ 22 – ₹ 5 = ₹ 17

Consumption of fixed capital = Total value of durable use goods/Total life span = ₹10/₹10 = ₹ 1 lakh

Net Indirect tax = Taxes on production – subsidy of production = ₹ 1 – ₹ 0 = ₹ 1

Net Value added at FC = GVA at MP – consumption of fixed capital – Net Indirect tax (Indirect Tax – Subsidy)

NVA at FC = ₹ 17 – ₹ 1 – ₹ 1 = ₹ 15

[CBSE Delhi – 2016]

6. Calculate the Net Value Added at Factor Cost:

S.NItems(₹ in lakh)
i)Goods and Service tax25
ii)Consumption of fixed Capital5
iii)Closing Stock10
iv)Corporate tax15
v)Opening stock20
vi)Sales540
vii)Purchase of raw materials140

Solution:-

Value of Output = Sales + Change in stock

Value of Output = vi + ( iii + v) = ₹ 540 + ( ₹ 10 – ₹ 20 ) = ₹ 530

Gross Value added at Market Price (GVA at MP) = Value of Output – Intermediate Consumption

GVA at MP = ₹ 530 – ₹ 140 = ₹ 390

Net value added at factor cost (NVA at FC) = GVA at MP – Depreciation – Net Indirect tax (Indirect tax – subsidy)

NVA at FC = ₹ 390 – 5 – (25 – 0) = ₹ 360 lakh

Note:-

1) Goods and Service tax is the indirect tax

2) Corporate tax paid by the company to government and considered as a direct tax and thus is not considered here.

3) Purchase of raw materials is a intermediate consumption.

7. Calculate the Gross Value Added at Market Price

S.NItems(₹ in lakh)
i)Goods and service tax40
ii)Consumption of fixed capital15
iii)Closing stock20
iv)Sales700
v)Subsidy5
vi)Intermediate consumption400
vii)Opening Stock10

Solution

Value of Output = Sales + Change in Stock

Value of Output = iv + ( iii – vii) = 700 + ( 20 – 10 ) = ₹ 710

Gross Value Added at Market Price (GVA at MP) = Value of Output – Intermediate Consumption

GVA at MP = ₹ 710 – ₹ 400 = ₹ 310 lakh

8. Calculate gross value added at market price.

S.NItems(₹ lakh)
i)Goods and service tax30
ii)Sales800
iii)Depreciation50
iv)Net Change in stocks– 40
v)Purchase of raw materials360
vi)Corporate tax10

Solution:-

Value of Output = Sales + Net change in stocks

Value of Output = ii + iv = 800 + (- 40) = ₹ 760

Gross Value added at MP (GVA at MP) = Value of Output – Intermediate Consumption

GVA at MP = 760 – ₹360 = ₹ 400 Lakh

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

S.NItems(₹ lakh)
i)Closing stock of firm X20
ii)Closing stock of firm Y15
iii)Opening stock of firm Y10
iv)Opening stock of firm X5
v)Sales by firm X300
vi)Purchases by firm X from firm Y100
vii)Purchases by firm Y from firm X80
viii)Sales by firm Y250
ix)Import of raw material by firm X50
x)Exports by firm Y30

Solution:-

Calculation of Value Added by firm X

Value of Output by Firm X = Sales by Firm X + Change in Stock of Firm X

Value of Output by Firm X = v – (i – iv) = 300 + (20 – 5) = ₹ 315

Value added by Firm X (GVA at MP by Firm X) = Value of Output – Intermediate Consumption (Purchases by firm X from firm Y + Import of raw material by firm X)

Value added by Firm X = 315 – (100 + 50) = ₹ 165 lakh

Calculation of Value Added by firm Y

Value of Output by Firm Y = Sales by Firm Y + Change in Stocks of Firm Y

Value of Output by Firm Y = viii + ( ii – iii ) = 250 + ( 15 – 10 ) = ₹ 255

Value added by firm Firm Y (GVA at MP by Firm Y) = Value of Output – Intermediate consumption (purchases by firm Y from firm X)

Value added by Firm Y = 255 – 80 = ₹ 175 lakh

Note:-

Item (x) is already included in item (viii) and so it is not considered.

10. Calculate Value Added by Firms A and B from the following data:-

S.NItems(₹ lakh)
i)Purchases by Firm B from Firm A40
ii)Sales by Firm B80
iii)Imports by Firm B10
iv)Rent paid by Firm B5
v)Opening stock of Firm B15
vi)Closing Stock of Firm B20
vii)Purchases by Firm A from Firm B20
viii)Closing Stock of Firm A20
ix)Opening Stock of Firm A10

Solution:-

Calculation of Value Added by Firm A

Value of Output by Firm A = Sales + Change in Stock (Closing Stock – Opening Stock)

Value of Output by Firm A = i + ( viii – ix ) = 40 + (20 – 10) = ₹ 50

Value Added by Firm A = Value of Output – Intermediate Consumption (Purchases by Firm A from Firm B)

Value Added by Firm A = 50 – 20 = ₹ 30

Calculation of Value Added by Firm B

Value of Output by Firm B = Sales + Change in Stock (Closing Stock – Opening Stock)

Value of Output by Firm B = ii + (vi – v) = 80 + (20 – 15) = ₹ 85

Value Added by Firm B = Value of Output – Intermediate Consumption (Purchases by firm B from firm A + Imports by firm B)

Value Added by Firm B = 85 – ( 40 + 10 ) = ₹ 35 lakh

Read Here:- 50 Important Numerical of Income Method of National Income class 12

Read Here:- 50 Important Numerical of Expenditure Method of National Income Class 12

11. Calculate net value added at factor cost:-

S.NItems(₹ Crore)
i)Subsidies5
ii)Sales500
iii)Intermediate Consumption200
iv)Closing Stock40
v)Consumption of fixed capital60
vi)Indirect tax30
vii)Opening Stock50

Solution:-

Value of Output = Sales + Change in Stock (Closing Stock – Opening)

Value of Output = ii + ( iv – vii) = 500 + (40 – 50) = ₹ 490

Gross Value Added at Market Price (GVA at MP) = Value of Output – Intermediate Consumption

GVA at MP = 490 – 200 = ₹ 290

Net Value Added at Factor Cost (NVA at FC) = GVA at MP – Consumption of fixed capital – Net Indirect tax (Indirect tax – Subsidy)

NVA at FC = 290 – 60 – ( 30 – 5) = ₹ 205 crore

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

S.NItems(₹ lakh)
i)Domestic Sales300
ii)Exports100
iii)Production for Self Consumption50
iv)Purchases from firm A110
v)Purchases from firm B70
vi)Imports of raw materials30
vii)Change in Stock60

Solution:-

Value of Output = Sales (Domestic Sales + Production for Self Consumption + Exports) + Change in stock (Closing Stock – Opening Stock)

Value of Output = (i + ii + iii) + vii = (300 + 100 + 50) + 60 = ₹ 510

Gross Value added by Firm X (GVA at MP) = Value of Output – Intermediate Consumption (Purchases from firm A + Purchases from Firm B + Imports of Raw materials)

Gross Value Added by firm X 510 – (110 + 70 + 30) = ₹ 300 lakh

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

S.NItems(₹ lakh)
i)Sales by Firm Y to Firm X400
ii)Sales by Firm X to households500
iii)Purchases by firm Z from Firm X300
iv)Opening stock of firm X25
v)Closing stock of firm X75

Solution:-

Value of Output = Sales (Sales by Firm X to households + Purchases by firm Z from firm X) + Change in stock (Closing Stock by firm X – Opening stock of Firm X)

Value of Output = ( ii + iii) + ( v – iv) = ( 500 + 300 ) + ( 75 – 25 ) = ₹ 850

Value added by Firm X = Value of Output – Intermediate Consumption (sales by Firm Y to firm X)

Value added by Firm X = 850 – 400 = ₹ 450 lakh

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

S.NItems(₹ lakh)
i)Goods and services tax100
ii)Sales1000
iii)Operating Surplus60
iv)Opening Stock200
v)Consumption of fixed capital50
vi)Closing Stock200
vii)Intermediate cost600
viii)Subsidies40

Solution:-

Value of Output = Sales + Change in stock (Closing Stock – Opening Stock)

Value of Output = ii + (vi – iv) = 1000 + (200 – 200) = ₹ 1000

Gross Value added at Market Price (GVA at MP) = Value of Output – Intermediate Consumption (intermediate cost)

GVA at MP = 1000 – 600 = ₹ 400

Net Value added at factor cost = GVA at MP – depreciation (consumption of fixed capital) – Indirect tax (Goods and service tax – subsidies)

NVA at FC = 400 – 50 – (100 – 40) = ₹ 290 lakh

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

S.NItems
i)Total Sales75000
ii)Purchase of raw materials and other inputs30000
iii)Indirect tax7500
iv)Consumption of fixed capital2500

Value of Output = Sales + Change in stock

Value of Output = 75000 + 0 = ₹ 75000

Gross value added at Market Price = Value of Output – Intermediate consumption ( Purchase of raw materials and other inputs)

GVA at MP = 75000 – 30000 = 45000

Net Value Added at Factor Cost = GVA at MP – Depreciation (consumption of fixed capital) – Net indirect tax (Indirect tax – subsidy)

NVA at MP = 45000 – 2500 – (7500 – 0)

NVA at MP = ₹ 35000

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

S.NItems(₹ in crore)
i)Sale of wheat by the farmer in the local market6,80,000
ii)Purchase of a tracter5,00,000
iii)Procurement of wheat by the government from the farmer20,000
iv)Consumption of wheat by the farming family during the year5,000
v)Subsidy2,000
vi)Expenditure on the maintenance of existing capital stock10,000

Solution:-

Sales = i + iii + iv = 680000 + 20000 + 5000 = ₹ 705000

Value of Output = Sales + Change in Stock

Value of output = 705000 + 0 = 70500

Gross value added at MP = Value of output – Intermediate consumption (Expenditure on the maintenance of existing capital stock)

GVA at MP = 705000 – 10000 = ₹ 695000

Net value added at factor cost = GVA at MP – consumption of fixed capital – Net indirect tax (indirect tax – subsidy)

NVA at FC = 695000 – (0 + 2000) = ₹ 697000

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

S.NItems(₹ in crore)
i)Purchase of Machinery to be used in the production unit100
ii)Sales200
iii)Intermediate Costs90
iv)Indirect taxes12
v)Change in stock10
vi)Excise Duty6
vii)Stock of Raw Material5

Solution:-

Value of Output = Sales + Change in stock

Value of Output = ii + v = 200 + 10 = ₹ 210

Gross Value added at Market Price = Value of Output – Intermediate Costs

GVA at MP = 210 – 90 = 120

Net Value added at Factor cost = GVA at MP – Depreciation – Net Indirect tax (Indirect tax – subsidy)

NVA at FC = 120 – 0 – (12 – 0) = ₹ 108 crore

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

S.NItems(₹ in lakh)
i)Subsidy40
ii)Sales800
iii)Depreciation30
iv)Exports100
v)Closing Stock20
vi)Opening Stock50
vii)Intermediate purchases500
viii)Purchase of Machinery for own use200
ix)Import of raw material60

Solution:-

Value of Output = Sales + Change in stock (closing stock – opening stock)

Value of Output = 800 + (20 – 50) = 770

Gross value added at Factor cost = Value of Output – intermediate consumption

GVA at MP = 770 – 500 = 270

Net Value added at Factor cost = GVA at MP – Depreciation – Net Indirect tax (Indirect tax – subsidy)

NVA at Fc = 270 – 30 – ( 0 – 40) = ₹ 280 lakh

Notes:- Exports are not considered as it is already included in Sales.

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

S.NItems₹ crore
i)Intermediate consumption of:
a) Primary sector
b) Secondary Sector
c) Tertiary Sector

500
400
300
ii)Value of Output
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector

1000
900
700
ii)Rent10
ix)Emoluments of Employees400
v)Mixed Income650
vi)Operating Surplus300
vii)Net Factor Income from abroad– 20
viii)Interest5
ix)Consumption of fixed capital40
x)Net Indirect tax10

Solution:-

GDP at MP = Value of Output – Intermediate Consumption

GDP at MP = ( iia + iib + iic ) – ( ia + ib + ic )

GDP at MP = ( 1000 + 900 + 700 ) – ( 500 + 400 + 300 )

GDP at MP = 2600 – 1200

GDP at MP = 1400 crore

19. Calculate Gross Domestic Product at market price from the following data:-

S.NItems(₹ lakh)
i)Net Value added at market price by:
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector

700
1000
1000
ii)Net Exports– 10
iii)Net Indirect tax100
iv)Value of Intermediate consumption in:
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector

200
300
300
v)Consumption of fixed capital in:
a) Primary Sector
b) Secondary Sector
c) Tertiary Sector

20
50
30

GDP at MP = Net Value at added at MP + Depreciation

GDP at MP = (ia + ib + ic) + (va + vb + vc)

GDP at MP = (700 + 1000 + 1000) + (20 + 50 + 30)

GDP at MP = 2700 + 100

GDP at MP = 2800 lakh

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. Sales200
3. Intermediate costs90
4. Indirect taxes12
5. Changes in Stock10
6. Excise duty6
7. Stock of Raw Material5

Solution:-

Value of Output = Sales + change in stock

Value of Output = 200 + 10 = 210

GDP at MP = Value of Output – Intermediate consumption

GDP at MP = 210 – 90

GDP at MP = 120

Net Value added at factor cost (NDP at FC) = GDP at MP – consumption of fixed capital – Net Indirect tax (Indirect tax – subsidy)

NVA at FC = 120 – 0 – ( 12 – 0 )

NVA at FC = ₹ 108 crore

21. Find NVA at FC from the following.

Items(₹ in crore)
1. Sales800
2. Taxes on production50
3. Depreciation70
4. Opening Stock100
5. Closing Stock80
6. Intermediate cost200

Solution:-

Value of output = Sales + Closing stock – Opening stock

Value of Output = 800 + 80 – 100

Value of Output = 780

GDP at MP = Value of output – Intermediate cost

GDP at MP = 780 – 200

GDP at MP = ₹ 580

NVA at FC = GDP at MP – Depreciation – Taxes on production

NVA at FC = 580 – 70 – 50

NVA at FC = ₹ 460 lakh

22. Calculate GVA at MP from the following:-

Items(₹ in crore)
1. Purchase by Firm A from Firm B100
2. Purchase by Firm B from Firm A150
3. Sales by Firm A200
4. Sales by Firm B300
5. Exports by Firm B30
6. Change in stock of Firm A– 20
7. Change in stock of Firm B10

Solution:-

GVA at MP by A = Sales by Firm A + Change in stock of Firm A – Purchase by firm a From Firm B

GVA at MP by A = 200 – 20 – 100

GVA at MP by A = ₹ 80 crore

GVA at MP by B = Sales by Firm B + Change in sock of Firm B – Purchase by Firm B from Firm A

GVA at MP by B = 300 + 10 – 150

GVA at MP by B = ₹ 160 crore

Note:- item 5th was not considered as it is already included in sales of B. Purchase from one firm by another firm is considered as intermediate consumption.

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 B20
2. Purchases of materials, etc. by Firm B from Firm A30
3. Value of output produced by Firm A100
4. Value of output produced by Firm B80
5. Payment of indirect tax by Firm A10
6. Payment of indirect tax by Firm B5
7. Consumption of fixed capital by Firm B5
8. Consumption of fixed capital by Firm A10
9. net change in stocks of Firm A– 7
10. Net change in stock of Firm B7
11. Net factor income from abroad– 5

Solution:-

Value added by Firm A (GDP at MP) = Value of output Produced by Firm A – Purchases of material, etc by firm A from firm B

Value added by Firm A = 100 – 20 = 80

Value added by Firm B = Value of output produced by Firm B – Purchases of material, etc. by firm B from Firm A

Value added by Firm B = 80 – 30 = 50

GDP at MP = Value added by Firm A + Value added by Firm B

GDP at MP = 80 + 50 = ₹ 130

NNP at FC = GDP at MP – Consumption of fixed capital by firm A – consumption of fixed capital by firm B + net factor income from abroad – payment of indirect tax by firm A – payment of indirect by Firm B

NNP at FC = 130 – 10 – 5 – 5 – 10 – 5

NNP at FC = ₹ 95 crore

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 A20
2. Opening stock of sector B5
3. Opening stock of sector A30
4. Closing stock of sector B15
5. Sales by sector B200
6. Sales by sector A150
7. Goods and Services tax paid by section A15
8. Consumption of fixed capital by sector B10
9. Consumption of fixed capital by sector A10
10. Subsidies to sector B5
11. Intermediate consumption by sector A70
12. Intermediate consumption by sector B60
13. Net factor income from abroad10

Solution:-

Value added by sector A = Sales by sector A + Closing stock of sector A – Opening stock of sector A – Intermediate consumption by sector A

Value added by sector A = 150 + 20 – 30 – 70

Value added by sector A = 70

Value added by sector B = Sales by sector B + Closing stock of sector B – Opening stock of Sector B – Intermediate consumption by sector A

Value added by sector B = 200 + 15 – 5 – 60

value added by sector B = 150

GDP at MP = Value added by sector A + Value added by sector B

GDP at MP = 70 + 150

GDP at MP = 220

NDP at FC = GDP at MP – consumption of fixed capital by sector A – consumption of fixed capital by sector B – Goods and services tax paid by sector A + subsidies to sector B

NDP at FC = 220 – 10 – 10 – 15 + 5

NDP at FC = ₹ 190 crore

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

Items(₹ in crore)
1. Sales180
2. Rent5
3. Subsidies10
4. Change in stock15
5. Purchase of raw materials100
6. Profits25

Solution:-

value of output = Sales + change in stock

Value of Output = 180 + 15

Value of Output = 195

Gross Value added at MP (GDP at MP) = Value of Output – purchase of raw materials

GDP at MP = 195 – 100

GDP at MP = 95

Gross value added at factor cost = GDP at MP – indirect tax + subsidies

Gross value added at factor cost = 95 – 0 + 10

Gross Value added at factor cost ₹ 105

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

Items(₹ in crore)
1. Net indirect tax20
2. Purchase of intermediate products120
3. Purchase of machines3oo
4. Sales250
5. Consumption of fixed capital20
6. Change in stock30

Solution:-

Value of output = Sales + Change in stock

Value of output = 250 + 30

Value of output = 280

gross value added at MP (GDP at MP) = Value of output – purchase of intermediate products

gross value added at MP = 280 – 120

gross value added at MP = 160

gross value added at FC = gross value added at FC – Net indirect tax

gross value added at FC = 160 – 20

gross value added at FC = ₹ 140 crore

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

Items(₹ in crore)
1. Depreciation5
2. Sales100
3. Opening stock20
4. Intermediate consumption70
5. Excise Duty10
6. Change in stock– 10

Solution

Value of Output = Sales + change in stock

Value of Output = 100 – 10 = 90

GDP at MP = Value of Output – Intermediate consumption

GDP at MP = 90 – 70

GDP at MP = 20

Net value added at MP = GDP at MP – Depreciation

Net Value added at MP = 20 – 5

Net Value added at MP = ₹ 15 crore

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. Depreciation1000
4. Intermediate cost12000
5. Closing stock3000
6. Opening stock2000
7. Excise2500
8. Sales Tax3500

Solution:-

Value of Output = Units of output sold * Price per unit of output + Closing stock – Opening stock

Value of Output = 1000 * 30 + 3000 – 2000

Value of Output = 30000 + 1000

Value of Output = 31000

GDP at MP = Value of output – intermediate cost

GDP at MP = 31000 – 12000

GDP at MP = 19000

Gross value added at Factor Cost = GDP at MP – Excise – sales tax

Gross value added at Factor Cost = 19000 – 2500 – 3500

Gross Value added at Factor Cost = ₹ 13000

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