Which of the following is a common error in calculating a deceased partner’s share of profit up to the date of death?

Correct answer: Including profit for the period after the date of death

A deceased partner is entitled only to the share of profit earned from the beginning of the accounting period up to the date of death. Therefore, including profit for the period after death is incorrect. Applying a time ratio up to the date of death and using average past profits can be appropriate when supported by the partnership agreement or the established basis of estimation. After calculation, the profit share is generally credited to the deceased partner’s capital or current account. Exam tip: Always limit the profit period to the date of death.