Book value of stock = Rs 50,000
Half of the stock = Rs 50,000 ÷ 2 = Rs 25,000
First half - Sold at 20% discount:
Sale value = Rs 25,000 - 20% of Rs 25,000
Sale value = Rs 25,000 - Rs 5,000 = Rs 20,000
This results in cash receipt of Rs 20,000
Second half - Taken over by partner at 10% discount:
Takeover value = Rs 25,000 - 10% of Rs 25,000
Takeover value = Rs 25,000 - Rs 2,500 = Rs 22,500
When a partner takes over an asset, it is adjusted against their capital account. No cash is received for this transaction.
Cash received at the time of realization = Only from the sold portion = Rs 20,000
The question specifically asks for amount received in cash, which excludes the asset taken over by the partner.