On dissolution of a partnership, the firm's assets realised ₦18,400,000 against a book value of ₦22,000,000. Liabilities settled amounted to ₦9,500,000. Realisation expenses were ₦300,000. The partners' capital balances before dissolution were: Kola ₦6,000,000, Lara ₦4,500,000, and Musa ₦2,000,000, sharing losses in the ratio 3:2:1. What is the loss on realisation to be borne by Lara?

Loss on realisation = Book value of assets − Realisable proceeds + Realisation expenses = (₦22,000,000 − ₦18,400,000) + ₦300,000 = ₦3,600,000 + ₦300,000 = ₦3,900,000. Lara's share of loss = 2/6 × ₦3,900,000 = ₦1,300,000. The liabilities figure is used to prepare the realisation account but does not affect the loss computation directly, as the loss arises solely from asset shortfall and expenses.