|
Particulars |
Amount (₹) |
|
Inventory at the beginning |
40,000 |
|
Credit Purchase |
1,60,000 |
|
Inventory at the end |
38,000 |
|
Trade payable at the beginning |
14,000 |
|
Trade payable at the end |
14,500 |
Cash paid for inventory is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹ 1,59,500
All purchases are on credit, so cash is paid only to the trade payables. The cash paid equals what was owed at the start plus the credit purchases, minus what is still owed at the end.
Trade payables at the beginning = ₹14,000
Add: Credit purchases = ₹1,60,000
Total payable = ₹1,74,000
Less: Trade payables at the end = ₹14,500
Cash paid for inventory = ₹1,59,500
The opening and closing inventory do not affect the cash paid; they affect only the cost of goods sold.
NCERT (2026-27 edition):
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