Calculate the value of ‘Sales’ from the following data:
\[
\begin{array}{|c|l|c|}
\hline
\textbf{S. No.} & \textbf{Particulars} & \textbf{Amount (in ₹ lakh)} \\
\hline
(i) & Subsidies & 200 \\
(ii) & Operating Surplus & 500 \\
(iii) & Opening Stock & 100 \\
(iv) & Closing Stock & 600 \\
(v) & Intermediate Consumption & 3,000 \\
(vi) & Consumption of Fixed Capital & 700 \\
(vii) & Profits & 750 \\
(viii) & \text{Net Value Added at Factor Cost (NVA}_{FC}\text{)} & 2,000 \\
\hline
\end{array}
\]
\[ \begin{array}{|c|l|c|} \hline \textbf{S. No.} & \textbf{Particulars} & \textbf{Amount (in ₹ lakh)} \\ \hline (i) & Subsidies & 200 \\ (ii) & Operating Surplus & 500 \\ (iii) & Opening Stock & 100 \\ (iv) & Closing Stock & 600 \\ (v) & Intermediate Consumption & 3,000 \\ (vi) & Consumption of Fixed Capital & 700 \\ (vii) & Profits & 750 \\ (viii) & \text{Net Value Added at Factor Cost (NVA}_{FC}\text{)} & 2,000 \\ \hline \end{array} \]
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Solution and Explanation
To calculate Sales, we use the following formula:
\[ \text{Sales} = \text{Gross Value Added at Market Price (GVA}_{MP}) + \text{Intermediate Consumption} \]First, compute GVAMP:
\[ \text{GVA}_{MP} = \text{NVA}_{FC} + \text{Depreciation} + \text{Net Indirect Taxes} \]Where:
Depreciation = Consumption of Fixed Capital = 700
Net Indirect Taxes = Indirect Taxes - Subsidies (but only Subsidies is given, assume Net Indirect Taxes = - Subsidies)
Now apply the formula for Sales using:
\[ \text{Sales} = \text{GVA}_{MP} + \text{Intermediate Consumption} \] \[ \Rightarrow \text{Sales} = 2{,}500 + 3{,}000 = \boxed{₹\ 5{,}500\ \text{lakh}} \quad (\text{Incorrect}) \]Correction:
We should rather use this standard formula to compute Sales:
\[ \text{Sales} = \text{Value Added at Factor Cost (NVA}_{FC}) + \text{Intermediate Consumption} + \text{Depreciation} + \text{Net Indirect Taxes} + \text{Opening Stock} - \text{Closing Stock} \]Substitute the given values:
\[ \text{Sales} = 2{,}000 + 3{,}000 + 700 - 200 + 100 - 600 = 5{,}600 - 700 = \boxed{₹\ 5{,}000\ \text{lakh}} \]Final Answer: ₹ 5,000 lakh
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