Deceased Partner’s Share

The deceased partner’s share of profit earned up to the date of death is a right of the deceased partner’s legal representatives. In accounting, this amount is adjusted through the deceased partner’s Capital or Current Account and transferred to the Executor’s or Legal Representative’s Account. It does not become the personal right of the surviving partners. Exam tip: Include profit up to the date of death in the claim of the deceased partner’s legal representatives.

The time-proportionate profit is calculated as: Annual profit × Number of completed months ÷ 12. Therefore, ₹4,68,000 × 7/12 = ₹2,73,000. Option B represents six months, while option C represents eight months. In such questions, always divide the elapsed months by 12 before applying the annual profit.

The deceased partner’s share of profit earned up to the date of death is credited to the capital account, or to the current account under the fixed-capital method. This credit increases the account’s credit balance, which forms part of the amount payable to the deceased partner’s legal representative. Debit items such as drawings or the share of loss would have the opposite effect. Exam tip: a partner’s share of profit is credited to the partner’s account.

Since profit is earned uniformly, the estimated profit for 2 months is ₹18,00,000 × \(2/12\) = ₹3,00,000. Hence, option A is correct. ₹1,50,000 is the profit for only 1 month, while ₹4,50,000 and ₹6,00,000 represent 3 and 4 months’ profit respectively. Exam tip: For profit up to the date of death, multiply annual profit by the relevant number of months divided by 12.

The time ratio divides the estimated profit for the accounting year between the period elapsed up to the partner’s death and the remaining period. Therefore, the deceased partner receives only the profit attributable to the period during which they were a partner, not the profit for the entire year. Determining capital or reducing liabilities is unrelated to the time ratio. Exam tip: Profit up to death is generally estimated as past profit multiplied by the time ratio for the elapsed period.

The deceased partner’s profit share for 5 months is calculated by multiplying the annual profit share by 5/12: ₹2,04,000 × 5/12 = ₹85,000. Option B, ₹1,02,000, represents the amount for six months and is therefore incorrect. Exam tip: For a partial year, divide the annual profit by 12 and multiply by the number of months.

A deceased partner’s share of profit is generally calculated for the period from the beginning of the accounting year up to the date of death, using the previous profit or another agreed basis. Therefore, the date of death fixes the period for which profit must be estimated. Capital, sales and closing stock are separate accounting items and are not automatically determined by the date of death. Exam tip: first identify the annual profit rate or basis, then adjust it for the period up to the date of death.

Assuming that profit accrues evenly throughout the year, the share for 10 months is ₹8,64,000 × 10/12 = ₹7,20,000. Option B, ₹6,48,000, represents the amount for 9 months, while option D is the full-year share. Exam tip: For a deceased partner’s profit share, divide the annual share by 12 and multiply it by the number of months up to the date of death.

When a partner dies, the deceased partner’s legal representative is entitled to the share of profit earned up to the date of death. Therefore, the determination of this profit share arises on the partner’s death. Retirement concerns the retiring partner’s settlement, not a deceased partner’s claim. Exam tip: Profit up to the date of death is commonly estimated on the basis of time or sales.

The proportionate profit up to the date of death is calculated as annual profit × months elapsed/12 = ₹3,72,000 × 8/12 = ₹2,48,000. Hence, option A is correct. Option B represents 6 months' profit, option C represents 10 months' profit, and option D represents 4 months' profit. Exam tip: divide the annual profit by 12 first and multiply it by the number of completed months.

A deceased partner is entitled to the profit earned up to the date of death because that profit accrued while the partner was part of the firm. Crediting this amount to the deceased partner’s capital account or executor’s account ensures a fair settlement and prevents the continuing partners from retaining an amount that is not wholly theirs. Exam tip: Calculate and record the deceased partner’s profit share only up to the date of death.

When profit is assumed to accrue uniformly, the profit up to the date of death is calculated on a time basis: ₹14,40,000 × 9/12 = ₹10,80,000. Option B represents only six months’ profit and is therefore incorrect. Exam tip: For profit up to retirement or death, multiply the annual profit by the elapsed months divided by 12 unless the question specifies another basis of profit estimation.

The deceased partner is entitled to a share of the profit earned up to the date of death. Since the exact profit may not be available immediately, it is commonly estimated using the average profit of previous years, usually apportioned according to the period up to death. Therefore, the average profit method is correct. Cash receipts, total purchases, and fixed capital are not standard bases for estimating this profit. Exam tip: Apply the relevant time proportion to the average profit when calculating profit up to the date of death.

The deceased partner’s profit is calculated in proportion to the period for which the partner remained in the firm. Therefore, profit share = ₹5,04,000 × 11/12 = ₹4,62,000. Option B represents the amount for 10 months, while option D is the full annual share for 12 months. Exam tip: For retirement or death during the year, multiply the annual profit share by the relevant months divided by 12.

The deceased partner’s share of profit up to the date of death is first credited to the partner’s capital or current account. The total amount due is then transferred to the Executor’s Account because payment is made to the deceased partner’s executor or legal representative. Purchases, Sales and Expense Accounts do not record this liability. Exam tip: Amounts payable after a partner’s death are ultimately transferred to the Executor’s Account.

Profit for 5 months = Annual profit × 5/12 = ₹6,96,000 × 5/12 = ₹2,90,000. The annual profit is apportioned in the ratio of 5 months to 12 months. Option B, ₹3,48,000, represents 6 months’ profit, not 5 months’ profit. Exam tip: use the fraction number of months/12 when annual profit is apportioned on a time basis.

The deceased partner’s partnership relationship ends on the date of death. Therefore, the partner’s share is determined only from the profit earned up to that date; there is no entitlement to profits earned afterward. Option B is incorrect because the firm may continue and earn profits after the partner’s death. Exam tip: Calculate the deceased partner’s profit share only for the period up to the date of death.

Profit for 6 months = Annual profit × 6/12 = ₹9,24,000 × 6/12 = ₹4,62,000. Therefore, option A is correct. Option B represents four months’ profit, while options C and D represent eight and three months’ profit, respectively. In the examination, calculate the deceased partner’s period profit as annual profit multiplied by the elapsed months and divided by 12.

A deceased partner’s share is generally calculated on the basis of the estimated profit from the beginning of the accounting year up to the date of death. The average profit of previous years reduces the effect of unusually high or low profits and gives a fairer estimate of normal profit. Stock valuation is a separate accounting procedure, so option B is not correct. Exam tip: associate average profit with estimating normal profit, not with cash or liabilities.

The profit share for 7 months is calculated as: annual share × 7/12 = ₹12,96,000 × 7/12 = ₹7,56,000. Option B represents the share for only 6 months, so it is incorrect. Exam tip: divide the annual amount by 12 and multiply it by the number of months involved.

The deceased partner’s share of profit earned up to the date of death forms part of the amount payable to the partner’s legal representatives. Therefore, its accurate determination is essential for settling their claim. The other options relate to claims of customers, suppliers, or the bank and are not the direct purpose of this calculation. Exam tip: Calculate profit up to the date of death separately and adjust the deceased partner’s share in the partner’s capital or current account.

Profit attributable to the period up to death = Annual profit × 4/12 = ₹16,20,000 × 4/12 = ₹5,40,000. Hence, option A is correct. Option B represents three months’ profit, option C represents six months’ profit, and option D represents two months’ profit. Exam tip: For profit up to the date of death, multiply the annual profit by the elapsed months divided by 12.

A deceased partner is entitled to the share of profit earned from the beginning of the accounting period up to the date of death, calculated in the partner’s profit-sharing ratio. Profit earned after that date belongs to the continuing partners, so using the entire year’s profit is incorrect. The profit up to the date of death is generally estimated using the previous year’s profit, sales, or time basis. Exam tip: profit up to the date of death × the deceased partner’s profit-sharing ratio.

The profit up to the date of death is estimated using the time ratio. Therefore, estimated profit = ₹6,00,000 × 4/12 = ₹2,00,000. Option B incorrectly applies a three-month proportion instead of four months. Exam tip: Treat the average annual profit as the profit for 12 months and multiply it by the number of months completed up to the date of death.

The deceased partner’s share of profit is calculated for the period during which the partner actually remained in the firm—normally from the beginning of the accounting year up to the date of death. Profit for the period after death or for the entire year is not automatically claimable. The year-end option would be correct only if death occurred on the last day of the accounting year. Exam tip: Check the agreement and calculate profit only up to the date of death, using the prescribed time or profit ratio.