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Why is a deceased partner’s share of profit calculated only up to the date of death and not for the future period?

Answer and explanation

Correct answer: The partnership relationship and the partner’s rights end on the date of death

The deceased partner’s partnership relationship ends on the date of death. Therefore, the partner’s share is determined only from the profit earned up to that date; there is no entitlement to profits earned afterward. Option B is incorrect because the firm may continue and earn profits after the partner’s death. Exam tip: Calculate the deceased partner’s profit share only for the period up to the date of death.

Related tags

Deceased PartnerProfit Till Date Of DeathPartnership ReconstitutionRetirement Or DeathProfit AppropriationDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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