Accountancy Part AReconstitution of Partnership Firm: Retirement and Death

From the following options, which one should be deducted in ascertain…

From the following options, which one should be deducted in ascertaining the amount due to retiring or deceased partner?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → His share of goodwill to be written off

The other three options are items added to the amount due to him; goodwill already in the books that has to be written off is a deduction.

NCERT (2026-27 edition):
Ascertaining the Amount Due to Retiring/Deceased Partner – “… The following deductions, if any, may have to be made from his share: (i) debit balance of his current account (if any); (ii) his share of goodwill to be written off, if necessary; (iii) his share of accumulated losses; (iv) his share of loss on revaluation of assets and liabilities; (v) his share of loss up to the date of retirement/death; (vi) his drawings up to the date of retirement/death; (vii) interest on drawings, if involved, up to the date of retirement/death.”