Which of the following deduction may be made from the sum due to the retiring partner?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Debit balance of his current account
The sum due to a retiring partner is built up from what the firm owes him and then reduced by what he owes the firm. A debit balance in his Current Account means he has drawn more than his credits, so that amount is owed by him and is deducted.
Why the other options are incorrect
Option (1) Credit balance of his current account — Incorrect. A credit balance is an amount the firm owes him, so it is added to his claim.
Option (2) His share of goodwill — Incorrect. His share of goodwill is paid to him by the gaining partners, so it is added. Only a share of goodwill that has to be written off is deducted.
Option (4) His share in the gain of revaluation of assets and liabilities — Incorrect. A gain on revaluation increases his claim; it is his share of a loss on revaluation that is deducted.
NCERT (2026-27 edition):
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