The executors of deceased partner will be paid interest............rate on the amount due upto the settlement on the retirement of the partner.

6% p.a.

The correct answer is option 3- 6% p.a.

The outgoing partner’s account is settled as per the terms of the partnership deed i.e., in lumpsum immediately or in various installments with or without interest as agreed or partly in cash immediately and partly in installments at the agreed intervals. In the absence of any agreement, Section 37 of the Indian Partnership Act, 1932 is applicable, which states that the outgoing partner has the option to receive either interest @ 6% p.a. till the date of payment or such share of profits that has been earned with his/her money (i.e., based on capital ratio).