A partner dies after completing 9 months of the financial year. The profit of the firm in the previous year was ₹2,88,000, and profit is earned evenly throughout the year. What estimated amount of the firm’s profit should be considered up to the partner’s date of death?

Correct answer: ₹2,16,000

Estimated profit up to the date of death = Annual profit × 9/12 = ₹2,88,000 × 9/12 = ₹2,16,000. ₹1,44,000 represents only six months’ profit, while ₹72,000 represents only three months’ profit. In an exam, convert the period up to death into a fraction of 12 months; if the partner’s profit-sharing ratio is given, apply that ratio to the estimated profit afterward.