Using the previous year’s annual profit of ₹5,04,000 as the basis, if a partner dies 5 months after the beginning of the financial year, what is the estimated profit up to the date of death?

Correct answer: ₹2,10,000

The estimated profit up to the date of death is calculated in proportion to the number of months: ₹5,04,000 × 5/12 = ₹2,10,000. Therefore, option A is correct. Option B represents four months’ profit, while option C represents six months’ profit. For exams, remember that if the deceased partner’s actual share is required, this amount must also be multiplied by the partner’s profit-sharing ratio.