If the partnership deed does not specify the method for estimating profit up to the date of a partner’s death, which basis is generally used?

Correct answer: Average profit of the preceding years

To determine the deceased partner’s share of profit up to the date of death, the average profit of the preceding years is generally used when the deed provides no specific method. Cash balance, sales and purchases do not directly measure profit. Exam tip: if the deed contains a specific agreed basis, that provision takes priority.