Why are profits earned after the date of death not included in the deceased partner’s share?

Correct answer: The right to participate in future profits ends on death

A deceased partner’s relationship with the firm ends on the date of death. Therefore, the partner is entitled only to the profit earned up to that date, or to the amount determined according to the partnership agreement; profits earned afterward belong to the surviving partners. Option B is incorrect because profits can be estimated, and the profit up to the date of death is often calculated on an estimated basis. Exam tip: Always link the deceased partner’s profit share to the period ending on the date of death.