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If the deed says profit up to date of death is to be calculated on sales basis why is this done?

Answer and explanation

Correct answer: To estimate profit up to date of death more fairly

Sales basis links profit estimate to actual activity rather than only time. It makes the deceased partners share fairer.

Related tags

Death Of PartnerProfit EstimationSales BasisPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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