If the deceased partner’s estimated annual share of profit is ₹10,08,000, what amount of profit share should be accounted for the 5 months up to the date of death?

Correct answer: ₹4,20,000

When profit is assumed to accrue evenly throughout the year, the share for 5 months is calculated as ₹10,08,000 × 5/12 = ₹4,20,000. Option B represents six months’ profit, while option C represents four months’ profit. Exam tip: For the period up to the date of death, multiply the annual profit by the number of completed months divided by 12.