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ParticularsAmount (Rs.)
Inventory at the beginning40,000
Credit Purchase1,60,000
Inventory at the end38,000
Trade payable at the beginning14,000
Trade payable at the end14,500

Cash paid for inventory is:

Solution

✅ Correct Option: 3

Cash paid to creditors = Opening payables + Credit purchases −- Closing payables = 14,000+1,60,000−14,500=1,59,50014{,}000 + 1{,}60{,}000 - 14{,}500 = 1{,}59{,}500.

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