A partner dies after completing 8 months of the financial year. If the annual profit is ₹1,80,000, what will be the profit apportioned up to the date of death on a time basis?

Correct answer: ₹1,20,000

Assuming that profit accrues evenly throughout the year, profit up to the date of death = Annual profit × elapsed-month proportion = \(₹1,80,000 \times \frac{8}{12} = ₹1,20,000\). Option B represents profit for only 6 months. In such questions, use \(\frac{months\ elapsed}{12}\) for time proportion.