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Which item is added when finding the sum due to a retiring partner?
AHis share of accumulated losses
BHis drawings up to retirement date
CDebit balance of his current account
DCredit balance of his capital account
Answer & Solution
Correct answer: D. Credit balance of his capital account
A credit balance in the partner's own capital account is money the firm owes him, so it forms the starting point of the sum due.
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