When a retiring partner is partly paid in cash and the remaining amount is treated as a loan, the journal entry recorded is:

Retiring Partners' Capital A/c Dr. (Total Amount due)
      To Cash/Bank A/c (Amount Paid)
      To Retiring Partners' Loan A/c (Amount of Loan)

When a retiring partner is partly paid in cash and the remaining amount is treated as a loan, the correct journal entry is option 4. It involves debiting the Retiring Partners' Capital Account for the total amount due, crediting the Cash/Bank Account for the amount paid in cash, and crediting the Retiring Partners' Loan Account for the amount treated as a loan. This entry reflects the partial cash payment made to the retiring partner and the transfer of the remaining amount to the loan account.