If a Partner derives any profit for himself/herself from any transaction of firm or use of property of business ..............
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - He/she has to pay it to the firm.
(i) If a partner derives any profit for him/herself from any transaction of the firm or from the use of the property or business connection of the firm or the firm name, he/she shall account for the profit and pay it to the firm.
(ii) If a partner carries on any business of the same nature as and competes with that of the firm, he/she shall account for and pay to the firm, all profit made by him/her in that business.