Select the partner(s) who will compensate the deceased partner for the share of goodwill at the time of death.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Gaining Partner(s)
On the death of a partner, his share of profit passes to the continuing partners. Those who gain a share must pay for it, so the deceased partner’s share of goodwill is debited to the gaining partners in their gaining ratio.
Why the other options are incorrect
Option (1) Remaining Partner(s) — Incorrect. A remaining partner whose share does not rise gains nothing and pays nothing.
Option (2) All Partners — Incorrect. The deceased partner does not compensate himself.
Option (3) Sacrificing Partner(s) — Incorrect. A sacrificing partner receives compensation; he does not pay it.
NCERT (2026-27 edition): |