In the event of retirement of partner, following deduction has to be made from his/her share.:

When a partner retires, the final amount payable to them is calculated by considering various adjustments to their capital account.

The retiring partner is entitled to receive (amounts that are added):

• Credit balance of Capital Account
• Credit balance of Current Account (if any)
• Share of accumulated profits and reserves
• Share of profit on revaluation of assets and liabilities
• Share of gain (if any)

However, certain amounts need to be deducted from the retiring partner's share:

• Share of accumulated losses
• Share of loss on revaluation
• Drawings and advances (if any)
• Share of goodwill to be written off (if previously recorded)

When goodwill already appears in the books and the partners decide to write it off at the time of retirement, the retiring partner must bear their share of this loss. This is because the retiring partner had enjoyed their share of this goodwill when it was recorded, and now must share in its elimination.

For example, if goodwill of ₹30,000 exists in books and needs to be written off, and the retiring partner's share is 1/3, then ₹10,000 will be debited to their Capital Account (a deduction).

Options 2, 3, and 4 represent credit balances or profits, which increase the amount payable to the retiring partner, not decrease it. Only goodwill written off represents a charge against the retiring partner's account.