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If the deceased partner’s estimated profit share for the full year is ₹2,64,000 and the partner dies 11 months after the beginning of the financial year, what will be the profit share up to the date of death? Assume that profit accrues evenly throughout the year.

Answer and explanation

Correct answer: ₹2,42,000

Profit share up to death = Full-year profit share × fraction of the year elapsed = ₹2,64,000 × 11/12 = ₹2,42,000. Option B uses 10/12 of the year, while option D takes the entire 12-month profit, so both are incorrect. Exam tip: when profit accrues evenly, calculate the deceased partner’s share in proportion to the time elapsed.

Related tags

Partnership AccountsDeceased PartnerProfit SharingTime ProportionReconstitutionDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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