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Why is a deceased partner not entitled to profits earned by the firm in the future?

Answer and explanation

Correct answer: His partnership ends on death

A partner’s partnership ends upon death; therefore, the deceased partner is not entitled to profits earned by the firm after the date of death. The partner’s share of profit up to the date of death is calculated and credited to the deceased partner’s executor’s account. Option B is not the fundamental reason—the entitlement ends because the partnership ends on death, not merely because the person does not become a new partner. Exam tip: calculate the deceased partner’s profit share only up to the date of death.

Related tags

AccountancyPartnershipReconstitutionDeceased Partner ShareRetirement Or Death Of A PartnerDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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