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In calculating the deceased partner’s share of profit, what period is meant by “up to the date”?

Answer and explanation

Correct answer: The period from the beginning of the current accounting year up to the date of death

“Up to the date” means the deceased partner’s proportionate share in the profit earned from the beginning of the current accounting year up to the date of death. Option B refers to the previous complete year, whereas option C covers the period after death. Exam tip: For the year of death, calculate profit for the period from the start of the accounting year up to the date of death.

Related tags

Deceased PartnerShare Of ProfitRetirement Or DeathAccounting YearPartnership AccountsDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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