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Which of these reduces what the firm owes a retiring partner at exit?
ASalary due to him up to retirement
BHis drawings up to the date of retirement
CInterest on his capital to date
DHis share of accumulated profits
Answer & Solution
Correct answer: B. His drawings up to the date of retirement
Money already taken out as drawings has been paid to him, so it reduces what the firm still owes at retirement.
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