On dissolution of a firm, its Balance Sheet revealed total creditors ₹50,000; Total Capital ₹48,000; Cash Balance ₹3,000. Its assets were realised at 12% less. Loss on realisation will be :

₹11,400

The correct answer is option 3- ₹11,400.

Total assets = Total of capital + liabilities
Cash balance + Other assets = Capital + Creditors
3,000 + Assets = 48,000 + 50,000
Assets = 98,000 - 3,000
          = 95,000

These assets of 95,000 are realised at 12% less means realised at 88% and loss is 12%
Loss on Realisation of assets =  95,000 x 12/100
                                          = 11,400