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.

₹20,000

The correct answer is option 2- ₹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