Question : Choose the correct statement with respect to the Share of Profit or Loss and the year of death will be?
Option 1: Deceased partner is entitled to his share in profit from the beginning of the accounting year up to the date of his death.

Option 2: He bears loss, if any incurred by the firm during this period.
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2

Question

Question : Choose the correct statement with respect to the Share of Profit or Loss and the year of death will be?

Option 1: Deceased partner is entitled to his share in profit from the beginning of the accounting year up to the date of his death.

Option 2: He bears loss, if any incurred by the firm during this period.

Option 3: Both 1 and 2

Option 4: Neither 1 nor 2

Team Careers360 · Accepted Answer

Correct Answer: Both 1 and 2

Solution : Answer = Both 1 and 2

Deceased partners are entitled to their share in the profit from the beginning of the accounting year up to the date of his death and he has also borne loss if any. This ensures a fair treatment of the deceased partner's interest in the partnership.
Hence, the correct option is 3.

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Question :
R, M and P were partners in a firm. P died on 29th February, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits

Question :
R, M and P were partners in a firm. P died on 29th February, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits