Unsolved Practicals

Practicals on Value Added Method

1. In an economy, following transactions took place. Calculate value of output and value added by Firm B:
() Firm A sold to firm B goods of 80 crore; to firm C 50 crore; to household7 30 crore and goods
of value 10 crore remains unsold
(i) Firm B sold to firm C goods of 70 crore; to firm D 40 crore; goods of value ? 30crore were
exported and goods of value 5 crore was sold to govemment. (CBSE, Sample Paper 2019
Vaiue ofOutputof firm B - 145 crores: Value added by fim B= F65 crores
2. Calculate Value added by firm A and firm B.
Particulars in crores
) Sales by firm A 100
(ii) Purchases from fim B by firm A 40
(i) 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 fim B 35
(vii) Opening stock of firm A 25
(vii) Opening stock of fim B 45
(ix) Indirect taxes paid by both the firms 30
Value added by firm A = 55 crores: Value added by fim B= 130cro
3. Calculate net value added at factor cost from following data:

Particulars in croresS
(i) Purchase of machinery to be used in the production unit 100

(i) Sales 200

(ii) Intermediate costs 90

12
(iv) Indirect taxes
10
(v)Change in stock

(vi) Goods and Services Tax

(vii) Stock of raw material 5
c o s t - T 0 8 Crores
Net valte added at factor

4. Calculate NDP
Particulars i n crores
) Subsidies 1

i) Sales 100
0
(ii) Closing stock
(iv) Indirect taxes 5

30
(V) Intermediate consumption
20
(vi) Opening stock
(vii) Consumption of fixed capital
NDPFC 4 1 crores

5. Calculate 'value of output' from the following data:

Tin lakhs
Particulars
() SubsIdy
150
(i) Intermediate consumption
(ii) Net addition to stocks ()13
30
(iv) Depreciation
(v) Goods and Services Tax 20

250
(vi) Net value added at factor cost
Value of output = {440 lakhs

6. Calculate value of output and gross value

added at market price
incrores
Particulars
(i) Opening stock 1,000
(i) Closing stock 800

(ii) Purchase of raw materials 200

(iv) Sales 10,000
(v) Indirect taxes 250

(vi) Subsidies 50
Value of output= 9,800 crores: Gross value added at MP = *9.600 crores
 7. Calculate Sales' from the following data: (CBSE. Foreign 2008(11)

Particulars in lakhs
() Net value added at factor cost 300
() Net addition to stocks -20
tin) Goods and Services Tax (GST) 30

10
(iv) Depreciation
(v) Intermediate consumption
100

(vi) Subsidy
'Sales Tax given in the question earher nas been replaced by GST

Sales 455 lakng

8. Calculate Net Value Added at Factor Cost: CBSE, Delhi 2012 (lh)
Particulars 600
() Consumption of fixed capital ()
(i) Goods and Services Tax or GST ) 400

(i) Output sold (units) 2.000

10
(iv) Price per unit of output ()
(v) Net change in stocks () )50
(vi) Intermediate cost () 10,000
500
(vi) Subsidy ()
GST
"Import duty given in the question earlier has been replaced by
9450
9. Calculate Net Value Added at Market Price: CBSE, Delhi 2012(

Particulars
) Output sold (units) 800

(i) Price per unit of output ) 20

(ii) Goods and Services Tax or GST () 2,000

(v) Net change in stocks ( H500

1,000
(v)Depreciation()
(vi) Intermediate cost( 8,000
Excise duty and Import duty 9given in the question earlier have been replaced by Gs
650
10. Find Net Value added at Market Price: (CBSE, Delhi 20161
Particulars |(inlakhs)
6) Fixed Capital good with a life span of 5 years 15
(i) Raw materials
(Gii) Sales 25
(iv) Net change in stock (2
() Taxes on production 1

20
11. Caiculate 'Sales' from the AIU India
following data CBSE,
Particulars (Rinlakhs)
) Subsidies 200
Gi) Opening stock 100

(il) Closing stock

600
(iv) Intermediate consumption
3,000
()Consumption of fixed capital 700
(vi) Profit 750
(vi) Net value added at factor cost 2,000
5,000 lakh
12. Supposefim A sold timber produced in its forest to firm B for 1,000 and firewood to consumers
tor fuel for 500. Firm B converted logs into slippers and partly sold to furmniture making fim C for
800 and the remaining to private consumers for 700. Firm C sold furniture worth 1,000 to private
consumers and the remaining to a government office for R 500. Calculate:
)Values added by firm A, firm B and firm C.
(i) Total value of output
(0) Value added by im A = 1,.500; Value added by im B= ?500. Value added by fim C= 700
() Total value of output= 4,500.
13. You are given following information about four producers A, B, C and D in an economy Asells 300
worth of his output to B, 200 worth of his output to C and 500 worth of output to households. The
sales of B to A, C and D are worth R 400, 7 200 and7 300 respectively. C sells to A, B and D output
worth 100 each. Sales by C to households are worth 900. D sells to households output worth
700. His exports are worth 300 while stock worth 200 remains unsold with D. Estimate the value

added by.
) A, B, C and D separately.
(i) All of them together.
(i) Value added: Fim A= *500: Firm B - 500: Firm C 800: Firm D= 800. (i) 72.600.
14. Suppose firm A sold raw material to firm B for < 1,000 and to fim C for 600. Firm B sold its product

R B00 and the remaining product was exported for 600. Fim C part
partly to private consumers for and the remaining product worth
of itsproduct to the government
for 500 tor public consumption
no raw material). () Find the value added
500 was unsold stock left with it. (Assume that tirmA buys
firm C. (i) Total Consumption Expenditure.
by firm A, firm B and (0) Value added: Fim A = ?1,600, Firm B = 400 Firm C= 400
(i) Total Consumption Expenditure = ?1,300.
tinal sale is for private consumption. A,
15. In an economy, the following transactions take place and the added is 7 40,000, sells half of
B,C and D are four industries.
A sells to 20,000. B whose valuevalue
Bfor K added is 7 30,000. D sells
to D,
its output to C and another half to D.C sells ts
all output whose
for 1,30,000. What is value added by D?
all its output to final product Value A d d e d b y D = 4 0 . 0 0 0
 Practicals on Income Method
National income
6. Calcuiate
Particulars Fin crores
(i) Mixed income of self employed 200
(i) Old age pension 20
(in) Dividends 100

(iv) Operating surplus 900

(v)Wages and salarnes 500

(vi) Profits 400

(vI) Employers' contribution to social security schemes 50

(viil) Net factor income from abroad

(x) Consumption of tixed capitat 5
(x) Net indirect taxes 50

17. Calculate NNP at FC

Particulars Rincrores
() Net current transters trom rest of the worid 80
(i) Wages and Salaries 00
(in) Net indirect taxes
(iv) Net Factor income trom abroad -20
(v) Rent and interest 160
(Vi) Corporation tax 40
(vii) Mixed Income ot the selt-employed 280
(vii) Undistributed profit 60
(x) Dividend 20
(x) Consumption of fixed capital 120

18. Calculate GNP at MP

Particulars in crores
(0) Employee Compensation 600
(i) Rent and interest 350
Profit 200
iv) Indirect Tax 160
(V) Consumption of fixed capital 200
(vi) Mixed Income of the self-employed 850
(vin) Subsidies 40
(vii) Net current transfers from rest of the world 850
(ix) Net Factor income from abroad (-100

a A1 220 crores
19. Calculate GNP at MP
Particulars in crores
(0) Indirect tax 200
(i) Consumption of fixed capital 100
(ii) Factor Income to abroad 230
(iv) Factor Income from abroad 320
(v) Rent
250
(vi) Dividend 220
(vii) Mixed income
120
(vii) Saving of private corporate sector 200

(Ix) Interest
100
(x) Subsidies
200
(NI) Compensation of empioyees 500
(xi) Corporate tax 400
iNP at MPu f1,960 rores
Calculate "Gross National Product at Market Price trom the following data (CBSE, All India 2013)

Particulars in crores
(6) Compensation of employees 2.000
(i) Interest 500
Rent 700

((V) Profits 800

(v) Employers' contribution to social security schemes 201

(vi) Dividends 300

(vi) Consumption of fixed capital 100

(vi) Net indirect taxes 250

(ix) Net exports 0

(x) Net factor income to abroad 150

(xi) Mixed income of self-employed 1.500
21. From the data given below. prove that Net Value Added at Factor Cost' is equal to'Income Generated

Particulars incrores
( )Opening stock 200
() Closing stock 400
(ii) Purchase of raw materials 300
(iv) Sales 1,200

(v) Corporate tax 100

(vi) Undistributed profits 50

(vi) Dividends 50
150
(vii) Rent
(ix) Interest 100
200
() Depreciation
(XI) Indirect taxes 150
(xi) Subsidies 50

(X1) Wages and salaries 350

2 O n the basis of following data. prove that Net Value Added at Factor Cost is equal to Income Generater

Particulars Fincrores
() Addition to stock
1.000
i) Sales 10,000
800
()Netindirect taxes
(v) Purchase of raw material 1,650
850
(v) Expenses on Power
500
(vi) Consumption of fixed capital
700
(vin) Rent
(vii) Compensation of Employees 3.500
1.000
(x) Interest
(x) Dividend 1.500
(X) Corporate gains tax 300
200
(xi)Undistributedprofit Net Value Added at Factor Cost= income Generated = 7 200 crores

Practicals on Operating Surplus

23. Calculate operating surplus
Particulars in crores
() Bonus to empBoyees 25
175
()Mixed income
(m) Profit 100
(iv) Dividend 40
(V) Corporate tax 30
(vi) Rent B0
(V) Royalty 0

(Vii) interest 130

(ix) Employers contribution to social security schemes 30
Operatng Suroius = 350 crores
24. Caiculate the value of operatng surplus.
Particulars in crores
0)Value of output 800
(i) Intermediate consumption 200
() Compensaton ofemployees 200
() indirect taxes
(v) Depreciation 20
(vi) Subsidies 50
(vil) Mixed income 100

Calculate the operating surplus.

25.
in crores
Particulars
() Compensation of employees 200
(ii) Indirect taxes 200

(ii) Consumption of fixed capital 100

(iv) Subsidies 50
(v)Gross domestic product at MP 600
Operating Surplus = 150 crores
26. Calculate operating surplus and compensation of employees.
Particulars incrores
i) Indirect taxes 250
(i) Depreciation 200
(ii) Royalty
20
(iv) Profit 200
50
(v) Subsidies

(vi) Gross domestic product at MP 1,800

50
(vi) Interest
100
(vii) Rent
Net factor income from abroad
)40
(ix) 1030 crores
Operating Surplus = 370 crores. Cormpensaton of employees =

Practicals on Expenditure Method

27. Calculate GNP at MP

Particulars
Fin crores
(i) Personal consumption expenditure 27.500

Government consumption expenditure 3,000

(i)
formation 2.500
(ii) Gross domestic fixed capital
services 500
(iv) Import of goods and
abroad 250
(v)Net factor income from
250
(vi) Subsidy
300
(vi) Fall in stock
services 450
(vii) Expot of goods and
I.000
(ix) Depreciation
1,000
(x)Netindirect taxes GNPat AMP3 40 ro

28. Caiculate NDP at F.

Particulars incrores
400
() Private final consumption expenditure
100
(i) Gross domestic capital formation

() Change in stocks 20
(iv) Net indirect taxes 60
(v) Net tactor income from abroad 0
(vi) Net exports 20
(Vil) Consumption of tixed capital 20

(vii) Government final consumption expenditure 100

NOP at FC -500 crores

29. Caiculate National Income.

Particulars in crores
() Private Final Consumption Expenditure 2,000
(i) Government Final Consumption Expenditure 700
() Gross domestic Capital tormaton 200
(iv) Net Exports 300
(V) Net Factor income trom abroad 400

(vi) Consumption of fixed capital 200

(Vil) Net indirect tax 50
Nalional Income 3 350 crores
(CBSE, Delhi 2013
30. Calculate NationalIncome from the following data:
Particulars Rincrores
() Private tinal consumption expenditure 900
(i) Profit 100
(un) Government final consumption expenditure 400
(iv) Net indirect taxes 100
(V) Gross domestic capital formation 250
(vi) Change in stock 50
(Vii) Net factor income from abroad -)40
(vii) Consumption of fixed capital 20
30
(1x) Net imports
1360 Crore