Stock at the time of dissolution was appearing in books at ₹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.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹20,000.
Total stock = 50,000
Half of stock = 50,000/2
= 25,000
It is sold at discount of 20% means 80% value is received.
Amount received = 25,000 x 80/100
= 20,000