If the partnership agreement contains no contrary provision, on what basis is the deceased partner’s share of profit up to the date of death generally determined?

Correct answer: Time-apportioned share of the previous year’s profit

The deceased partner is entitled to the profit earned up to the date of death. In the usual method, the previous year’s profit is taken as the base and apportioned according to the period elapsed up to death. Taking the entire estimated current-year profit is incorrect because the partner did not work for the whole year. Exam tip: Remember the formula: previous year’s profit × period elapsed / 12 months.