On the basis of information given below the closing Inventory will be:

Opening inventory 20,000

Average inventory 40,000

₹60,000

The correct answer is option 3- ₹60,000.

Opening inventory 20,000
Average inventory 40,000

Average inventory = (Opening inventory + Closing inventory)/2
                40,000 = (20,000 + Closing inventory)/2
                80,000 = 20,000 + Closing inventory

Closing inventory = 80,000 - 20,000
                          = 60,000