Question:
From the following options, select the deductions to be made from the share of a partner at the time of his/her retirement.
(A) Debit balance of his current account
(B) Share of goodwill to be written off
(C) Share of accumulated losses
(D) Share of loss on revaluation of assets and liabilities
Choose the correct answer from the options given below:
From the following options, select the deductions to be made from the share of a partner at the time of his/her retirement.
(A) Debit balance of his current account
(B) Share of goodwill to be written off
(C) Share of accumulated losses
(D) Share of loss on revaluation of assets and liabilities
Choose the correct answer from the options given below:
(A) Debit balance of his current account
(B) Share of goodwill to be written off
(C) Share of accumulated losses
(D) Share of loss on revaluation of assets and liabilities
Choose the correct answer from the options given below:
Show Hint
Deductions are the items debited to the retiring partner's capital account.
Updated On: Oct 1, 2026
- (A), (B) and (C) only
- (A), (B) and (D) only
- (A), (B), (C) and (D)
- (A), (C) and (D) only
Show Solution
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The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
The amount paid to a retiring partner is his total credit balance. Anything that reduces his claim is a deduction from his share.
Step 2: Check statement (A):
A debit balance in his current account means he owes the firm. This reduces the amount due to him. So (A) is a deduction.
Step 3: Check statement (B):
The retiring partner's share of goodwill that is written off is debited to his capital account. So (B) is a deduction.
Step 4: Check statement (C):
His share of accumulated losses (such as the debit balance of Profit and Loss A/c) is debited to his capital account. So (C) is a deduction.
Step 5: Check statement (D):
A loss on revaluation is shared by all partners in the old ratio, so his share is debited to his capital account. So (D) is a deduction.
Step 6: Choose the option:
All four items reduce his share. So the answer is option (3).
Final Answer:
All four items, (A), (B), (C) and (D), are deducted from the retiring partner's share. \[ \boxed{\text{(A), (B), (C) and (D) (Option 3)}} \]
The amount paid to a retiring partner is his total credit balance. Anything that reduces his claim is a deduction from his share.
Step 2: Check statement (A):
A debit balance in his current account means he owes the firm. This reduces the amount due to him. So (A) is a deduction.
Step 3: Check statement (B):
The retiring partner's share of goodwill that is written off is debited to his capital account. So (B) is a deduction.
Step 4: Check statement (C):
His share of accumulated losses (such as the debit balance of Profit and Loss A/c) is debited to his capital account. So (C) is a deduction.
Step 5: Check statement (D):
A loss on revaluation is shared by all partners in the old ratio, so his share is debited to his capital account. So (D) is a deduction.
Step 6: Choose the option:
All four items reduce his share. So the answer is option (3).
Final Answer:
All four items, (A), (B), (C) and (D), are deducted from the retiring partner's share. \[ \boxed{\text{(A), (B), (C) and (D) (Option 3)}} \]
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