Deceased Partner’s Share

Correct answer: A. ₹6,00,000

Profit up to the date of death = Estimated annual profit × fraction of the year elapsed = ₹9,00,000 × 8/12 = ₹6,00,000. This calculation assumes that profit accrues uniformly throughout the year. Therefore, option A is correct; the relevant fraction is 8/12, not 8/10. Exam tip: For profit up to the date of death, multiply the estimated annual profit by the number of elapsed months divided by 12.

Correct answer: A. Deceased Partner’s Capital Account

Under the fluctuating capital method, a partner’s share of profit is credited directly to the partner’s capital account. Therefore, the deceased partner’s share of profit up to the date of death is credited to the deceased partner’s capital account. The current account is generally used for such adjustments under the fixed capital method, while the bank account is affected only when payment is actually made. Exam tip: first identify whether the question refers to the fluctuating or fixed capital method.

Correct answer: A. ₹2,16,000

Estimated profit up to the date of death = Annual profit × 9/12 = ₹2,88,000 × 9/12 = ₹2,16,000. ₹1,44,000 represents only six months’ profit, while ₹72,000 represents only three months’ profit. In an exam, convert the period up to death into a fraction of 12 months; if the partner’s profit-sharing ratio is given, apply that ratio to the estimated profit afterward.

Correct answer: A. लेखांकन वर्ष के आरम्भ से मृत्यु की तिथि तक

A deceased partner’s share of profit is generally calculated from the beginning of the current accounting year up to the date of death. The amount is credited to the deceased partner’s Capital Account or Executor’s Account, as specified by the partnership deed. Option B is incorrect because the partner is no longer a partner for the period after death. Exam tip: interpret ‘up to death’ as the period from the start of the current year to the date of death.

Correct answer: A. ₹3,00,000

Estimated profit up to the date of death = Average annual profit × fraction of the year elapsed = ₹7,20,000 × 5/12 = ₹3,00,000. Therefore, option A is correct. Option B represents profit for only 4 months. Remember that if the deceased partner’s individual profit-sharing ratio is provided, this amount must be multiplied by that ratio.

Correct answer: A. देयता

The deceased partner’s share of profit up to the date of death is credited to the partner’s capital or current account. Since the firm must pay this amount to the deceased partner’s legal representative, it is treated as a liability of the firm. It is not income because it is the partner’s entitlement out of the firm’s profit, not an inflow earned by the firm. Exam tip: Any amount payable to a retiring or deceased partner is generally shown as a liability until it is settled.

Correct answer: A. ₹3,64,000

For a deceased partner, profit up to the date of death is estimated in proportion to the elapsed months: ₹6,24,000 × 7/12 = ₹3,64,000. Therefore, option A is correct. Option B represents profit for only 6 months. Exam tip: for an annual profit, multiply by the fraction of months completed over 12.

Correct answer: A. कानूनी प्रतिनिधि

The deceased partner’s share of profit earned up to the date of death is credited to the deceased partner’s capital or current account and is ultimately payable to the legal representatives. An incoming partner joins the reconstituted firm and is not the final recipient of the deceased partner’s earlier profit share. Exam tip: Credit the profit up to the date of death to the deceased partner’s account and transfer the amount payable to the legal representatives.

Correct answer: A. ₹2,80,000

Using the time basis, profit for 10 months = ₹3,36,000 × 10/12 = ₹2,80,000. Therefore, option A is correct. ₹1,68,000 represents profit for only 6 months, while ₹3,36,000 represents the full annual profit for 12 months. In an examination, multiply the annual profit by the months elapsed divided by 12; if the individual partner’s share is required, apply the partner’s profit-sharing ratio separately.

Correct answer: A. \(\text{Estimated annual profit} \times \frac{\text{period up to death}}{\text{full year}} \times \text{deceased partner's profit-sharing ratio}\)

Under the time-basis method, the estimated annual profit is first apportioned according to the fraction of the year completed up to the date of death. The resulting profit is then multiplied by the deceased partner’s profit-sharing ratio. Therefore, option A is correct. Option B uses the period after death, while option C omits the partner’s profit-sharing ratio. Exam tip: use months/12 for a monthly period or days/365 for a daily period unless the question specifies another basis.

Correct answer: A. ₹48,000

The profit up to the date of death is estimated on a time basis. Therefore, profit for 3 months = ₹1,92,000 × 3/12 = ₹48,000. ₹96,000 represents six months’ profit, while ₹64,000 represents four months’ profit. Exam tip: For a time-based estimate, divide the annual profit by 12 and multiply it by the relevant number of months. To calculate the deceased partner’s individual share, this amount must further be multiplied by the partner’s profit-sharing ratio.

Correct answer: A. Average profit of the preceding years

To determine the deceased partner’s share of profit up to the date of death, the average profit of the preceding years is generally used when the deed provides no specific method. Cash balance, sales and purchases do not directly measure profit. Exam tip: if the deed contains a specific agreed basis, that provision takes priority.

Correct answer: A. ₹7,48,000

For determining the deceased partner’s share of profit, the annual profit is apportioned according to the time elapsed. Profit for 11 months = ₹8,16,000 × 11/12 = ₹7,48,000. Therefore, option A is correct. Option B represents 9 months’ profit, while option C represents 6 months’ profit. Exam tip: divide the annual profit by 12 first to find monthly profit, then multiply it by the number of completed months.

Correct answer: A. Excluded from the calculation

A deceased partner is entitled to profit only for the period from the beginning of the accounting year up to the date of death. Since the partner ceases to be a partner after death, the post-death period is excluded from the calculation of that partner’s profit share. If the annual profit is determined later, the profit up to the date of death is generally estimated and credited to the deceased partner’s account. Exam tip: remember the phrase “up to the date of death,” not “up to the year-end.”

Correct answer: A. ₹1,92,000

Using the time basis, profit for 4 months = ₹5,76,000 × 4/12 = ₹1,92,000, so option A is correct. Option C represents only 2 months’ profit, while B and D represent 6 months’ and 8 months’ profit respectively. Exam tip: For annual profit, multiply by the relevant number of months divided by 12.

Correct answer: A. यह बढ़ जाती है

The deceased partner’s share of profit up to the date of death is credited to the partner’s capital or current account. This increases the balance in that account and, consequently, the amount payable by the firm to the legal representative. A share of loss would have the opposite effect. Exam tip: Profit is credited and loss is debited to the deceased partner’s account.

Correct answer: A. ₹74,000

Profit for 2 months = Annual profit × 2/12 = ₹4,44,000 × 2/12 = ₹74,000. Therefore, option A is correct. The other amounts result from using an incorrect number of months or an incorrect proportion. Exam tip: Divide the annual profit by 12 to find the monthly profit, then multiply it by the required number of months.

Correct answer: A. Both the Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.

A partner remains a member of the firm up to the date of death, so his agreed share of the profit earned up to that date is determined and generally credited to his Capital or Current Account. Therefore, both statements are true, and the Reason directly explains why he is entitled to that profit. Option B is incorrect because the Reason is the actual basis of the Assertion, not merely a related fact. Exam tip: distinguish the deceased partner’s right to profit from its payment to his legal representative, which may occur later.

Correct answer: A. ₹3,30,000

Profit for 3 months = Annual profit × 3/12 = ₹13,20,000 × 3/12 = ₹3,30,000. This is the firm’s time-apportioned profit for the period before applying the deceased partner’s profit-sharing ratio. ₹2,20,000 represents 2 months, ₹4,40,000 represents 4 months, and ₹6,60,000 represents 6 months. Exam tip: For profit up to the date of death, multiply the annual profit by the elapsed months divided by 12.

Correct answer: A. Time-apportioned share of the previous year’s profit

The deceased partner is entitled to the profit earned up to the date of death. In the usual method, the previous year’s profit is taken as the base and apportioned according to the period elapsed up to death. Taking the entire estimated current-year profit is incorrect because the partner did not work for the whole year. Exam tip: Remember the formula: previous year’s profit × period elapsed / 12 months.

Correct answer: A. ₹4,20,000

When profit is assumed to accrue evenly throughout the year, the share for 5 months is calculated as ₹10,08,000 × 5/12 = ₹4,20,000. Option B represents six months’ profit, while option C represents four months’ profit. Exam tip: For the period up to the date of death, multiply the annual profit by the number of completed months divided by 12.

Correct answer: A. पिछले कुछ वर्षों के औसत लाभ

The profit up to the date of death is generally estimated using the average profit of the preceding years because it gives a more balanced measure of the firm’s normal earning capacity. Profit for only one year may contain unusual fluctuations. Drawings, cash balance and the partner’s loan are not measures of profit. In an examination, first check the basis prescribed in the partnership deed; if none is given, the usual average-profit basis is applied.

Correct answer: A. ₹63,000

One month’s estimated profit = Annual profit × 1/12 = ₹7,56,000 × 1/12 = ₹63,000. Therefore, option A is correct. The other amounts result from using incorrect fractions or multiples. In the examination, divide annual profit by 12 to obtain monthly profit; the deceased partner’s actual share must then be calculated using the partner’s profit-sharing ratio.

Correct answer: A. Including profit for the period after the date of death

A deceased partner is entitled only to the share of profit earned from the beginning of the accounting period up to the date of death. Therefore, including profit for the period after death is incorrect. Applying a time ratio up to the date of death and using average past profits can be appropriate when supported by the partnership agreement or the established basis of estimation. After calculation, the profit share is generally credited to the deceased partner’s capital or current account. Exam tip: Always limit the profit period to the date of death.

Correct answer: A. ₹7,68,000

The profit for 8 months is calculated as: annual profit × 8/12 = ₹11,52,000 × 8/12 = ₹7,68,000. Therefore, option A is correct. Options B and C represent the portions for 6 months and 4 months respectively, while D represents the portion for 10 months. Exam tip: For time-based profit calculation, divide the annual profit by 12 and multiply it by the relevant number of months.