When a partner dies during the accounting year (intervening period), their share of profit from the beginning of the year till the date of death needs to be calculated and credited to their account.
Since the actual profit for this period is not yet ascertained (accounts not finalized), Profit and Loss Suspense Account is used temporarily.
The deceased partner's share of profit during the intervening period is an amount due to them (or their legal representatives). Any amount due to someone must be credited to their account.
Therefore, the journal entry is:
Profit and Loss Suspense A/c Dr.
To Deceased Partner's Capital A/c
This entry ensures that the deceased partner's capital account is credited with their rightful share of profit for the period they were alive during the year. The suspense account will be cleared later when actual profits are determined at the year-end.
The correct answer is Option 4.