The deceased partner’s share of profit up to the date of death is generally calculated on which basis?

Correct answer: Average past profits

The direct answer is A: the average of past profits. When a partner dies during the accounting year, the exact profit for the whole year is usually not yet known. The firm therefore estimates the deceased partner’s share up to the date of death using a reasonable basis stated in the partnership agreement or customary accounting practice. The commonly used basis is the average profit of previous years, often adjusted if the question provides special information. Option A is correct. Option B is less appropriate because an estimate based only on the current year may be uncertain and is not the usual general basis. Option C is wrong because cash balance is an asset or liquidity figure, not profit. Option D is wrong for the same reason; bank balance does not measure earned profit. Always distinguish profit from cash or bank balances.