When closing the Profit and Loss Suspense Account by transferring the amount of profit to the gaining partners' capital accounts, the journal entry is:

Gaining Partners Capital A/c Dr. (in gaining ratio)
       To Profit & Loss Suspense A/c
(P & L Suspense A/c is closed)

The correct answer is option 1-
Gaining Partners Capital A/c Dr. (in gaining ratio)
       To Profit & Loss Suspense A/c
(P & L Suspense A/c is closed)

The journal entry to close the Profit and Loss Suspense Account by transferring the amount to the gaining partners' capital accounts is option A. It involves debiting the Gaining Partners Capital Account in their gaining ratio and crediting the Profit & Loss Suspense Account.

For being retiring partners share of profit for the intervening period to books of account, the following journal entry is recorded.
(i) Profit & Loss Suspense A/c Dr.
      To Retiring Partners Capital A/c
(Share of profit for intervening/period)

Later, Profit and Loss suspense account is closed by transferring the amount to the gaining partners capital account in their gaining ratio. The journal entry is:
(ii) Gaining Partners Capital A/c Dr. (in gaining ratio)
         To Profit & Loss Suspense A/c

Alternatively, the following journal entry can also be passed in place of (i) or (ii)
Gaining Partners Capital A/c Dr.
       To Retiring partners Capital A/c
(Share of profit of retiring partner credited)