At the time of dissolution, a firm transferred ₹1,00,000 Assets to the realization account and 50% of the assets were taken over by Kiran at 20% discount. How much net assets were taken over by Kiran?

₹40,000

The correct answer is option 4- â‚¹40,000.

Total assets = 1,00,000

50% of the assets were taken over by Kiran at 20% discount.

So, 50% assets = 1,00,000 x 50/100
                        = 50,000

Discount = 20%
Discount amount = 50,000 x 20/100
                          = 10,000

Net asset taken over Kiran = 50,000 - 10,000
                                       = 40,000