Question

Discuss the various methods of computing the share in profits in the event of death of a partner.

Answer 1

Answer Computation of profit will be different in case of death of a partner as compare to the retirement. The reason is that in case of retirement everything is pre-planned but in case of death nothing is planned. In case of death, the share of profit.can be calculated by one of the two methods.

Answer 2

The different methods of computing the share in profits in the event of death of a partner is profits on the basis of sale and the other method is profits on the time period before the death of the partner

Explanation:

• The computing of profit is calculated differently in case of death of a partner as compared to the retiring of the partner.  If the partner dies then then claimed amount of the profits are transferred to the person who is executing the work on his behalf
• The profits are calculated from the start of the financial year till the time period of the death of the partner. The profit is calculated and taken into account on the basis of average profit of the previous years. This is taking into account that the profit would be constant in the present year
• The profits are also taken into account on the basis of the sales from the start of year till the death of the partner. This is also taken from assuming that the 'profit margin' would remain same as the previous years.  

To know more about computing the share in profits

A Nominal partner gets: (a) No share in profits (b) Equal share in profits (c) Share in profits proportionate to contribution (d) None of the above

https://brainly.in/question/8798819