Match List I with List II:

$\begin{array}{|cc|}\hline \text{Particulars}& \text{Amount (₹)}\\ \text{Inventory at the beginning}& \mathrm{40,000}\\ \text{Credit Purchase}& \mathrm{1,60,000}\\ \text{Inventory at the end}& \mathrm{38,000}\\ \text{Trade payable at the beginning}& \mathrm{14,000}\\ \text{Trade payable at the end}& \mathrm{14,500}\\ \hline\end{array}$

Cash paid for inventory is:

The correct option is ₹1,59,500.

Step-by-Step Explanation:

To determine the cash paid for inventory, we need to analyze the relationship between the credit purchases of inventory and the changes in trade payables during the period. The beginning and ending inventory values are not needed for this calculation because the total amount of credit purchases (₹1,60,000) is already directly provided.

Trade payables represent the liability of the business to its suppliers for credit purchases. The relationship between opening trade payables, credit purchases, cash paid, and closing trade payables can be formulated as follows:
$\text{Closing Trade Payables}=\text{Opening Trade Payables}+\text{Credit Purchases}-\text{Cash Paid for Inventory}$
Rearranging the formula to solve for the Cash Paid for Inventory:
$\text{Cash Paid for Inventory}=\text{Opening Trade Payables}+\text{Credit Purchases}-\text{Closing Trade Payables}$

Now, let's substitute the given values from the table into the formula:

• Opening Trade Payables (Trade payable at the beginning) = ₹14,000
• Credit Purchases = ₹1,60,000
• Closing Trade Payables (Trade payable at the end) = ₹14,500

Thus, the cash paid for inventory during the period is ₹1,59,500.