Effect on Net Assets if Cash is Received from Debtors of Rs. 50,000

Net assets, also known as shareholders' equity or owners' equity, represents the residual interest in the assets of an entity after deducting liabilities. It is calculated by subtracting total liabilities from total assets.

When cash is received from debtors, it means that the entity has collected the amount owed to it by its customers or debtors. This transaction has the following effect on the net assets:

1. Increase in Cash (Asset):
- The cash received from debtors is recorded as an increase in the cash account.
- This transaction results in an increase in the asset side of the balance sheet.

2. Increase in Accounts Receivable (Asset):
- When the amount owed by debtors is collected, it reduces the accounts receivable balance.
- As a result, there is a decrease in the accounts receivable account, which is an asset.
- However, in this case, the question states that cash is received from debtors, which means the accounts receivable balance is reduced to zero.
- As a result, there is no effect on the net assets from the accounts receivable account.

3. No Change in Net Assets:
- Net assets are calculated by subtracting total liabilities from total assets.
- Since the cash received from debtors increases the asset side of the balance sheet (cash), but there is no corresponding increase in liabilities, the net assets remain the same.
- The increase in cash is offset by a decrease in accounts receivable, resulting in no change in the net assets.

Therefore, the correct answer is option 'C' - No change in net assets.