Deficiency account is a ledger account that is used to record the shortfall or deficit in a partner's capital account. This can happen when the partner's share of losses exceeds their share in the partnership's capital. Deficiency account is a temporary account that is closed at the end of the accounting period.

Specimen of Deficiency Account:

| Deficiency Account | Debit | Credit |
| --- | --- | --- |
| Partner's Capital Account | - | $2,000 |
| Profit and Loss Account | $5,000 | - |
| Total | $5,000 | $2,000 |

Explanation:

- The Deficiency Account is being debited with $5,000 which represents the partner's share of losses that exceed their capital contribution.
- The Partner's Capital Account is being credited with $2,000 to reflect the deficit in their capital account.
- The Profit and Loss Account is being credited with $5,000 to transfer the partner's share of losses to the Deficiency Account.
- The total of the Deficiency Account is $3,000, which is the difference between the debit and credit side of the account.

Conclusion:

Deficiency account is used to keep track of the temporary deficit in a partner's capital account. It is important to maintain this account to ensure that each partner's capital account is accurate and up-to-date. The account is closed at the end of the accounting period, and any remaining balance is transferred back to the partner's capital account.