Why is the date of death important when calculating a deceased partner’s share?

Correct answer: It determines the cut-off for profits and other adjustments up to the date of death

The date of death acts as the accounting cut-off date. The deceased partner’s share is determined in profits or losses, goodwill, revaluation, accumulated profits, and other required adjustments up to that date. The partner has no claim over profits or losses arising after death. Option D is incorrect because death generally results in reconstitution of the firm, not necessarily its dissolution. Exam tip: calculate the deceased partner’s share of profit only up to the date of death.