Chapter 2 National Income - Part 3 Value Added Method
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Chapter 2 National Income - Part 3 Value Added Method
Last updated at April 16, 2024 by Teachoo
Example 9
| Particulars | Amt in lakhs |
| Durable use producer goods with a life span of 10 years | 10 |
| Single use producer goods | 5 |
| Sales | 20 |
| Unsold output produced in the year | 2 |
| Taxes on production | 1 |
No questions in this part
Treatment of Single use goods and Durable use of goods in Value Added Method Types of Purchases of Goods Single Use Goods Used One time Example Purchase of goods We consider it as Intermediate Consumption Durable use goods Used for Number of years Example Fixed Assets like Machine We calculate Depreciation on it Depreciation = Fixed Assets/No of years Calculate Net Value Added at Factor Cost Particulars Amt in lakhs Durable use producer goods with a life span of 10 years 10 Single use producer goods 5 Sales 20 Unsold output produced in the year 2 Taxes on production 1 CALCULATION OF VALUE ADDED VALUE OF OUTPUT 20 change in stock 2 22 Less VALUE OF INTERMEDIATE CONSUMPTION 5 VALUE ADDED 17 CALCULATION OF NET VALUE ADDED AT FACTOR COST GDP Mp (Gross Value Added at Market Price) 17 Less Net Indirect Taxes 1 Gross Value Added at Factor Cost 16 Less Depreciation 1 Net Value Added at Factor Cost 15
