At dissolution, if ₹20,000 cash is realised from assets and ₹15,000 is paid to settle liabilities, with no other items involved, what will be the net cash result?

Correct answer: Net surplus of ₹5,000

Net cash result = cash realised − amount paid to settle liabilities = ₹20,000 − ₹15,000 = ₹5,000 surplus. Therefore, option A is correct. Option B reverses the subtraction and gives a deficit. Remember that actual realisation profit cannot be determined from these two figures alone; the book value of assets and other items are also required.