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Why are sales made after the partner’s death not included while estimating the deceased partner’s profit up to the date of death?

Answer and explanation

Correct answer: They are sales made after death

A deceased partner is entitled only to the profit earned up to the date of death. Sales made after that date and the profit arising from them relate to a period in which the partner was no longer associated with the firm, so they are excluded from the estimation of the deceased partner’s share. The other options are incorrect because sales may be cash or credit, and sales are neither expenses nor necessarily losses. Exam tip: Treat the date of death as the cut-off date for calculating the deceased partner’s profit.

Related tags

Deceased Partner ShareRetirement Or Death Of A PartnerProfit Up To DeathPartnership AccountingAccountancy Class 12Deceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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