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Question -

From the information given below you are required to calculate the cash paid for the inventory:

Particulars

(₹)

Inventory in the beginning

40,000

Credit Purchases

1,60,000

Inventory in the end

38,000

Trade payables in the beginning

14,000

Trade payables in the end

14,500



Answer -


Trade Payables Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

Cash (Balancing fig.)

1,59,500

Balance b/d

14,000

 Balance c/d

14,500

Purchases

1,60,000

1,74,000

1,74,000

Therefore the cashpaid for Inventory amounts to ₹ 1, 59,500

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