Explanation:

Let's break it down:

- Item 1: Rs.60,000

- Credit terms: (2 1/2)/10, 1/20, net 30

- Since payment is on the 14th day, it qualifies for a 1% discount.

- Discount: 1% of Rs.60,000 = Rs.600

- Payable amount after discount: Rs.60,000 - Rs.600 = Rs.59,400

- Item 2: Rs.1,40,000

- Credit terms: 3/5, 2/15, net 30

- Since payment can be made under the 2% discount period (within 15 days), you get a 2% discount.

- Discount: 2% of Rs.1,40,000 = Rs.2,800

- Payable amount after discount: Rs.1,40,000 - Rs.2,800 = Rs.1,37,200

- Total Payable: Rs.59,400 + Rs.1,37,200 = Rs.1,96,600

The correct option is:

Option 3: Rs.1,96,600