Retirement settlement after revaluation gain Steps:

• L's initial capital balance: $10,000.
• Add full revaluation gain to L's capital (as adjustment for retirement): $10,000 +$6,000 = $16,000.
• Total amount due to L: $16,000 (current account treated separately or incorporated into loan).
• Cash paid from bank: half of amount due = $16,000 × 0.5 =$8,000.

Why D is correct:

• In partnership retirement, the revaluation gain is credited to the retiring partner's capital account, making total due $16,000; half paid per settlement terms.

Why the others are wrong:

• A: Understates payment; ignores revaluation adjustment.
• B: Equals current balance only; excludes capital and revaluation.
• C: Matches revaluation gain; ignores partner's capital base.

Final answer: D