What is the relation between goodwill and profit up to the date of death for a deceased partner?

Correct answer: Both are separate rights

The direct answer is A, both are separate rights. A deceased partner’s claim includes the partner’s share of goodwill and the partner’s share of profit earned up to the date of death. These arise from different bases. Goodwill compensation is connected with the value of the firm’s reputation and the deceased partner’s old share. Profit up to death is calculated for the period during which that partner worked, often using time or sales information and an agreed profit estimate. Option A is correct because one right does not cancel the other. Option B is wrong because the two amounts depend on different facts and need not be equal. Option C is wrong because profit is not normally deducted from goodwill; both are separately calculated credits. Option D is wrong because receiving profit does not remove the goodwill entitlement. The final amount payable may combine several items, but combining them in the final account does not make them the same item. Remember: goodwill is a reputation claim, while profit is a period-of-work claim.