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:

• A. (A), (B) and (C) only
• B. (A), (B) and (D) only
• C. (A), (B), (C) and (D)
• D. (A), (C) and (D) only

Hint:

Deductions are the items debited to the retiring partner's capital account.

Answer 1

The Correct Option is C

Step 1: Look at the effect on the capital account:
A deduction is any item debited to the retiring partner's capital account. Credit items like reserves or a revaluation gain increase his claim.

Step 2: Classify the items:
Debit balance of current account: debit. Written-off goodwill share: debit. Accumulated loss share: debit. Revaluation loss share: debit.

Step 3: Confirm with journal entries:
For example: Retiring Partner's Capital A/c Dr. to Goodwill A/c, Retiring Partner's Capital A/c Dr. to Revaluation A/c (for a loss), Retiring Partner's Capital A/c Dr. to Profit and Loss A/c (for a loss). Each entry debits the capital account.

Step 4: Conclusion:
All four are deductions, which matches option 3.

Final Answer:
All four items are deductions, option 3. \[ \boxed{\text{(A), (B), (C) and (D) (Option 3)}} \]