The deceased partner’s profit is to be estimated on a time basis up to the date of death. If the firm’s estimated annual profit is ₹5,76,000, what will be the share of profit for 4 months?

Correct answer: ₹1,92,000

Using the time basis, profit for 4 months = ₹5,76,000 × 4/12 = ₹1,92,000, so option A is correct. Option C represents only 2 months’ profit, while B and D represent 6 months’ and 8 months’ profit respectively. Exam tip: For annual profit, multiply by the relevant number of months divided by 12.