Question

If a partner dies during the year, how will you find out the share of profit of the deceased partner?

Answer 1

To find the share of profit of a deceased partner, calculate the total profit for the year up to the date of death. Then, determine the number of days the partner was alive and apply the formula:

Deceased Partner’s Share = `("Total Profit"xx"Share of Partner")/365xx"Days Partner was Alive"`

This gives the deceased partner's share of profit for the period they were alive.