What is not included in the sum due to the retiring partner?

The correct answer is Option (4) → Share of remaining partners in profits

The sum due to a retiring partner is made up only of what belongs to him: his capital and current account balances, his share of goodwill, reserves and revaluation gain, and his profit, interest and salary up to the date of retirement. What the remaining partners earn is theirs, and none of it is owed to the outgoing partner.

• Option (1) Share of Goodwill — Included in the sum due. The goodwill was built while he was a partner, so his share of it is paid to him by the gaining partners.

• Option (2) Credit balance of his current account — Included in the sum due. A credit balance is his own money left in the firm.

• Option (3) Share of accumulated profits (reserves) — Included in the sum due. Reserves are undistributed past profits, and he is entitled to his share of them.