In the event of death of a partner, the accumulated profits are shared by the partners in their:

Old Profit sharing Ratio

The correct answer is option 1- Old Profit sharing Ratio.

Sometimes, the Balance Sheet of a firm may show accumulated profits in the form of general reserve and/on accumulated losses in the form of profit and loss account debit balance. The retiring/deceased partner is entitled to his/her share in the accumulated profits and is also liable to share the accumulated losses, if any. These accumulated profits or losses belong to all the partners and should be transferred to the capital accounts of all partners in their old profit sharing ratio. The following journal entries are recorded for the purpose.
(i) For transfer of accumulated profits (reserves):
Reserves A/c Dr.
To All Partners’ Capital A/c’s (Individually)