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For what period is the deceased partner generally entitled to claim a share of profit?

Answer and explanation

Correct answer: Up to the date of death

The deceased partner’s share of profit is calculated for the period during which the partner actually remained in the firm—normally from the beginning of the accounting year up to the date of death. Profit for the period after death or for the entire year is not automatically claimable. The year-end option would be correct only if death occurred on the last day of the accounting year. Exam tip: Check the agreement and calculate profit only up to the date of death, using the prescribed time or profit ratio.

Related tags

Partnership AccountsRetirement Or DeathDeceased PartnerProfit ShareReconstitutionDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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