When a partner dies, up to what period is their share of the current accounting year’s profit calculated?

Correct answer: From the beginning of the accounting year up to the date of death

The deceased partner’s share is calculated on the profit earned from the beginning of the current accounting year up to the date of death. The partnership deed may prescribe the estimation method, such as the average profit of past years or a sales-based method. Profit earned after death belongs to the continuing or reconstituted firm, so calculation up to the year-end is not compulsory. Exam tip: remember “up to the date of death” as the final limit for the deceased partner’s profit share.