Explanation:

- Total Assets: Rs 2,00,000

- Total Liabilities: Rs 40,000

- Amount Realised on Sale of Assets: Rs 1,75,000

- Realisation Expenses: Rs 3,000

To find the profit or loss on realisation:

1. Determine the net amount realised from selling assets by subtracting realisation expenses from the sale amount:

Rs 1,75,000 - Rs 3,000 = Rs 1,72,000

2. Calculate the loss by subtracting total liabilities from the net realised amount:

(Rs 2,00,000 - Rs 1,72,000) - Rs 40,000 = Rs 28,000 (loss)

- Option 1: Profit Rs 12,000 - Incorrect

- Option 2: Loss Rs 68,000 - Incorrect

- Option 3: Loss Rs 28,000 - Correct

- Option 4: Loss Rs 25,000 - Incorrect

Correct Answer: Option 3 - Loss Rs 28,000

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