Explanation:

- When a partner retires, the goodwill of the firm is adjusted among all partners based on the gaining ratio or sacrifising ratio, his account is credited 

- The retiring partner is compensated for their share of goodwill, leading to an adjustment in the capital accounts of the remaining partners.

- Remaining Partners: They gain from the retiring partner’s share in profit; thus, they need to compensate the retiring partner by debiting their account in most of the cases

- All Partners: This would imply all partners, including the retiring partner, which isn’t the standard practice as the remaining partners compensate the retiring partner.

- None of the Above: Incorrect, as there’s an adjustment involving specific partners.

Correct Answer: Option 1