Step 1: Calculate Credit Purchases
Let credit purchases = ₹ x
Then cash purchases = 25% of x = 0.25x
Total purchases = x + 0.25x = 1.25x
So,
\[
1.25x = 15,00,000
\]
\[
x = \frac{15,00,000}{1.25} = ₹ 12,00,000
\]
Thus, credit purchases = ₹ 12,00,000
Step 2: Average Trade Payables
Trade Payables Turnover Ratio = \(\frac{\text{Net Credit Purchases}}{\text{Average Trade Payables}}\)
Therefore:
\[
4 = \frac{12,00,000}{\text{Average Trade Payables}}
\]
\[
\text{Average Trade Payables} = ₹ 3,00,000
\]
Step 3: Opening and Closing Payables
Let opening payables = ₹ y
Then closing payables = 2y
So, average = \(\frac{y + 2y}{2} = 1.5y\)
Hence:
\[
1.5y = 3,00,000
\]
\[
y = ₹ 2,00,000
\]
Therefore:
Opening Payables = ₹ 2,00,000
Closing Payables = ₹ 4,00,000