Explanation:

- Trade Payables Turnover Ratio Formula:

$$

\text{Trade Payables Turnover Ratio} = \frac{\text{Credit Purchases}}{\text{Average Trade Payables}}

$$

- Given Values:

- Credit Purchases: Rs 6,00,000

- Trade Payables Turnover Ratio: 5

- Calculate Average Trade Payables:

$$

\text{Average Trade Payables} = \frac{\text{Credit Purchases}}{\text{Trade Payables Turnover Ratio}} = \frac{6,00,000}{5} = 1,20,000

$$

- Average Trade Payables Formula:

$$

\text{Average Trade Payables} = \frac{\text{Opening Creditors} + \text{Closing Creditors}}{2}

$$

- Let Opening Creditors = x:

$$

\frac{x + (x - 10,000)}{2} = 1,20,000

$$

- Solve for x:

$$

2x - 10,000 = 2,40,000 \Rightarrow 2x = 2,50,000 \Rightarrow x = 1,25,000

$$

- Calculate Closing Creditors:

$$

x - 10,000 = 1,25,000 - 10,000 = 1,15,000

$$

- Options:

- Option 1: Rs 1,15,000

- Option 2: Rs 1,25,000

- Option 3: Rs 1,30,000

- Option 4: Rs 1,10,000