If the profit for the previous year was ₹3,60,000 and a partner died 2 months after the beginning of the financial year, what would be the estimated share of profit up to the date of death, assuming profit accrues evenly?

Correct answer: ₹60,000

Estimated profit up to the date of death = previous year’s annual profit × the proportion of months elapsed. Thus, ₹3,60,000 × 2/12 = ₹60,000. ₹30,000 represents only one month’s profit, so it is incorrect. In such questions, multiply annual profit by the elapsed months divided by 12.