Calculate Value added by firm A and firm B Sales by firm A ₹ 100 Purchases from firm B by firm A ₹ 40

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Anurag Pathak25.51K November 11, 2023 0 Comments

Calculate Value added by firm A and firm B

Particulars	₹ in Crores
(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
(ix) Indirect taxes paid by both the firms	30

Ans: Value added by firm A = ₹ 55 Crores; Value added by firm B = ₹ 130 Crores

score 0 · Answer 1 · 2023-11-11T06:29:44+00:00

Solution:-

Calculation of Value added by Firm A

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

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

Value of Output by Firm A = ₹ 95 Crores

Value added by Firm A = Value of Output by Firm A – Purchase from firm B by Firm A

Value added by Firm A = ₹ 95 – ₹ 40

Value added by Firm A = ₹ 55 Crores

Calculation of Value added by Firm B

Value of output by Firm B = Sales by Firm B + (Closing Stock of firm B – Opening Stock of firm B)

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

Value of Output by Firm B = ₹ 190 Crores

Value added by Firm B = Value of Output by Firm B – Purchase from Firm A by Firm B

Value added by Firm B = ₹ 190 – ₹ 60

Value added by Firm B = ₹ 130 Crores