If the deceased partner’s estimated annual share of profit, based on the previous year, is ₹7,68,000 and he dies 10 months after the beginning of the accounting year, what will be his time-apportioned share of profit up to the date of death?

Correct answer: ₹6,40,000

The time-apportioned share up to death is calculated as: annual share of profit × elapsed months/12. Thus, ₹7,68,000 × 10/12 = ₹6,40,000. Option B would represent only nine months’ share, so it is incorrect. In the examination, use the number of months completed from the beginning of the accounting year as the numerator.