In the accounting year in which a partner dies, how is the period after death treated while calculating the deceased partner’s share of profit?

Correct answer: Excluded from the calculation

A deceased partner is entitled to profit only for the period from the beginning of the accounting year up to the date of death. Since the partner ceases to be a partner after death, the post-death period is excluded from the calculation of that partner’s profit share. If the annual profit is determined later, the profit up to the date of death is generally estimated and credited to the deceased partner’s account. Exam tip: remember the phrase “up to the date of death,” not “up to the year-end.”