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The deed says deceased partners profit share will be calculated on previous years profit. Why may this be needed?

Answer and explanation

Correct answer: To estimate profit up to date of death

Actual profit up to death date may be difficult to calculate immediately. The deed gives an accepted basis for estimation.

Related tags

Death Of PartnerProfit ShareEstimationPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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