Assertion (A): A deceased partner is entitled to his share of the profit earned from the beginning of the financial year up to the date of his death.

Reason (R): He was a partner of the firm up to the date of death, and his right to the profit for that period had accrued.

Correct answer: Both A and R are correct, and R is the correct explanation of A

A partner retains the right to his agreed share of the firm’s profit up to the date of death. Accordingly, the profit attributable to that period is credited to the deceased partner’s account or to the account of the legal representative. The amount may be estimated on the basis of actual profit, time, sales, or average past profit, as provided in the partnership deed. Since he was a partner during that period, the Reason correctly explains the Assertion. Exam tip: Do not credit the deceased partner with the profit for the entire year; consider only the period up to the date of death.