Explanation:

When a partner dies, his share in the partnership firm is transferred to his legal heirs or nominees. The share of the deceased partner in the firm includes his share in the assets, liabilities, and goodwill of the firm. The share of goodwill of the deceased partner is also distributed among the remaining partners.

The question asks about the share of goodwill of the deceased partner and how it will be borne by the remaining partners. The answer is option 'B', which is the gaining ratio.

Gaining Ratio:

The gaining ratio is the ratio in which the remaining partners acquire the share of the outgoing partner. In case of the death of a partner, the gaining ratio is calculated by adding the share of the deceased partner to the existing profit sharing ratio of the remaining partners. The formula for calculating the gaining ratio is:

Gaining Ratio = New Profit Sharing Ratio - Old Profit Sharing Ratio

The share of goodwill of the deceased partner is distributed among the remaining partners in the gaining ratio. This means that the partners who gain more from the share of the deceased partner will bear a higher share of the goodwill.

Example:

Suppose a partnership firm has three partners A, B, and C with a profit sharing ratio of 3:2:1. If partner A dies and his share is transferred to his legal heirs, then the share of goodwill of partner A will be distributed among partners B and C in the gaining ratio.

Suppose the gaining ratio of B and C is 2:1. This means that B will gain twice the share of C from the share of A. If the share of goodwill of A is Rs. 30,000, then B will bear Rs. 20,000 (2/3 of Rs. 30,000) and C will bear Rs. 10,000 (1/3 of Rs. 30,000) of the share of goodwill of A.

Conclusion:

In case of the death of a partner, the share of goodwill of the deceased partner is distributed among the remaining partners in the gaining ratio. The partners who gain more from the share of the deceased partner will bear a higher share of the goodwill.