Stock at the time of dissolution was appearing in books at Rs 50,000. Half of the stock was sold at a discount of 20% and the remaining was taken over by one of the partners at a 10% discount. What amount was received in cash at the time of realization of stock.

Let's divide the book value of stock ($\text{Rs. }50,000$) into two halves:First Half Book Value = $\frac{50,000}{2}=\text{Rs. }25,000$ Second Half Book Value = $\frac{50,000}{2}=\text{Rs. }25,000$ Now evaluate the distinct realization pathways:First Half (Sold for Cash):Sold at a $20\%$ discount.
$$\text{Discount Amount}=20\%\text{ of }25,000=\text{Rs. }5,000$$
$$\text{Cash Received}=25,000-5,000=\text{Rs. }20,000$$
Second Half (Taken over by Partner):Taken over at a $10\%$ discount.Realized value = $25,000-(10\%\text{ of }25,000)=25,000-2,500=\text{Rs. }22,500$.Crucial note: This settlement value is adjusted directly against the partner's capital balance; it does not bring actual cash liquidity into the firm.The question asks for the specific amount received in cash, which is exactly $\text{Rs. }20,000$.