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If the deceased partner’s annual share of profit is ₹12,96,000, what will be the share of profit for 7 months up to the date of death?

Answer and explanation

Correct answer: ₹7,56,000

The profit share for 7 months is calculated as: annual share × 7/12 = ₹12,96,000 × 7/12 = ₹7,56,000. Option B represents the share for only 6 months, so it is incorrect. Exam tip: divide the annual amount by 12 and multiply it by the number of months involved.

Related tags

AccountancyPartnershipReconstitutionDeceased PartnerProfit SharingRetirement Or DeathDeceased Partner’s ShareDeceased Partner S Share

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