Explanation:

- The firm is dissolving, and the Balance Sheet reveals:

- Creditors: Rs 50,000

- Capital: Rs 48,000

- Cash Balance: Rs 3,000

- The total assets equal the sum of creditors and capital minus cash, which is Rs 101,000 (Rs 50,000 + Rs 48,000 - Rs 3,000) = 95,000

- Assets realize 12% less, so they’re sold for 88% of their value.

- Realised value = 88% of Rs 95,000 = Rs 83,600

- Therefore, the loss on realization is:

- Loss = Total assets – Realized value

- Loss = Rs 95,000 - Rs 83,600 = Rs 11,400