Based on the previous year, if the firm’s estimated annual profit is ₹6,72,000 and a partner dies 5 months after the beginning of the year, what amount of profit should be estimated for the firm up to the date of death, assuming profits accrue evenly?

Correct answer: ₹2,80,000

Estimated profit up to the date of death = Annual profit × fraction of the year elapsed = ₹6,72,000 × 5/12 = ₹2,80,000. Hence, option A is correct. Option B represents six months’ profit, while option C represents three months’ profit; option D uses an incorrect proportion for five months. Exam tip: To calculate the deceased partner’s actual share, multiply this interim profit by the partner’s profit-sharing ratio.