Why is the date of death important when calculating a deceased partner’s share of profit up to the date of death?

Correct answer: यह उस अवधि को निर्धारित करती है जिसके लिए लाभ की गणना की जानी है

A deceased partner’s share of profit is generally calculated for the period from the beginning of the accounting year up to the date of death, using the previous profit or another agreed basis. Therefore, the date of death fixes the period for which profit must be estimated. Capital, sales and closing stock are separate accounting items and are not automatically determined by the date of death. Exam tip: first identify the annual profit rate or basis, then adjust it for the period up to the date of death.