CUET Preparation Today
CUET
-- Accountancy Part B
Accounting Ratios
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:
₹ 1,59,000
₹ 1,60,000
₹ 1,59,500
₹ 1,60,500
The correct answer is Option (3) - ₹ 1,59,500.
Cash paid for inventory = Credit Purchase - Increase in Trade payable = 1,60,000 - 500 = 1,59,500
Increase in Trade payable = Trade payable at the beginning - Trade payable at the end = 14,000 - 14,500 = (500) Increase
