If a partner dies 5 months after the beginning of the accounting year, what time ratio should be used to calculate the profit up to the date of death?

Correct answer: 5/12

An accounting year is generally taken as 12 months. Therefore, the time ratio for the 5 months up to the date of death is 5/12. The ratio 7/12 represents the remaining 7 months, while 1/5 and 5/10 do not represent the annual time proportion. In exams, count the months up to the date of death and divide them by 12.