Question

On the basis of the following data about an economy which consists of only two firms, find out the value added by firm B.

$\begin{array}{cc}\text{Items}& \left(\text{in lakh}\right)\\ \text{Sales by firm A}& 100\\ \text{Purchases from firm B by firm A}& 40\\ \text{Purchases from firm A by firm B}& 60\\ \text{Sales by firm B}& 200\\ \text{Closing stock of firm A}& 20\\ \text{Closing stock of firm B}& 35\\ \text{Opening stock of firm A}& 25\\ \text{Opening stock of firm B}& 45\end{array}$

• A. 100
• B. 130
• C. 140
• D. 200

Answer 1

The correct option is B

130

Value added by firm B = Sales by firm B - Purchases from firm A by firm B + (Closing stock of firm B- Opening stock of firm B) = 200 - 60 + (35-45) = 130 Lakh rupees