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Why is a deceased partner entitled to a share of the profit earned by the business up to the date of death?

Answer and explanation

Correct answer: Because he was a partner until the end of that period

Until the date of death, the deceased person remains a partner and co-owner of the firm. Therefore, his proportionate share of the profit earned up to that date is credited to his capital or current account, or to the account of his executor. Being a lender or an employee does not create a right to share in partnership profits. Exam tip: Calculate the deceased partner’s profit share only for the period up to the date of death, not automatically for the entire year.

Related tags

Partnership AccountsDeceased PartnerProfit Up To DeathReconstitutionPartner RightsDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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