If the death of a partner occurs during the year, the representative is entitled to his/her share of profits earned till the .

previous year

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date of death

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financial year

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end of current year

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Solution

The correct option is B date of death
On the death of a partner, the partnership ceases to exist. But the firm may not cease to exist as the other remaining partners may decide to continue the business.If the death of a partner occurs during the year, the representatives of the deceased partner are entitled to his/her share of profits earned till the date of death.

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Q. Sunny, Honey and Rupesh were partners in a firm. On 31st March, 2014, their Balance Sheet was as follows:

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(d) His share in the profits of the firm till the date of his death, calculated on the basis of rate of net profit on sales of the previous year. The rate of net profit on sales of previous year was 20%. Sales of the firm during the year till 31st December, 2014 was ₹ 6,00,000.
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