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easyMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

In the case of retirement of a partner, the item to be deducted from partner's capital account is:

  1. A
    Interest on capital.
  2. B
    Profit on revaluation.
  3. C
    Share of general reserve.
  4. D
    Share of accumulated loss.

Solution & Step-by-step Explanation

Items that reduce a partner's capital balance are debited (deducted from) their capital account. Out of the choices given, interest on capital, profit on revaluation, and share of general reserve increase the capital account balance (credited), whereas a share of accumulated losses decreases it (debited).

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In the case of retirement of a partner, the item to be deducted from partner's capital account is:
A
Interest on capital.
B
Profit on revaluation.
C
Share of general reserve.
D
Share of accumulated loss.

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