Stock at the time of dissolution was appearing in books at Rs 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.

The correct option is Rs. 20,000.

Step-by-step Explanation:
Let us break down the transaction step-by-step to find the actual cash received from the realization of stock.

1. Total Value of Stock:
The book value of the stock at the time of dissolution is:
Total Stock = Rs. 50,000

2. Realization of the First Half of the Stock (Sold for Cash):
The question states that half of the stock was sold at a discount of 20%.
Value of half of the stock:
$$\text{Half Stock Value}=\frac{\text{Rs.}\mathrm{50,000}}{2}=\text{Rs.}\mathrm{25,000}$$
This half was sold at a discount of 20%.
Discount amount:
$$\text{Discount}=20\%\text{ of Rs.}\mathrm{25,000}=\frac{20}{100}\times \mathrm{25,000}=\text{Rs.}\mathrm{5,000}$$
Amount received in cash from this sale:
$$\text{Cash Received}=\text{Rs.}\mathrm{25,000}-\text{Rs.}\mathrm{5,000}=\text{Rs.}\mathrm{20,000}$$

3. Realization of the Remaining Half of the Stock (Taken over by a Partner):
The remaining half of the stock (book value of Rs. 25,000) was taken over by one of the partners at a 10% discount.
When a partner takes over an asset, it is debited to the Partner's Capital Account rather than resulting in an immediate inflow of cash. Therefore, this transaction does not bring any cash into the firm.

Conclusion:
The total amount received in cash at the time of realization of stock is only the proceeds from the first half sold, which equals Rs. 20,000.