In case of retirement, the profit and loss suspense account is closed by transferring the amount to the.........

Gaining partners Capital Account

The correct answer is option 4- Gaining partners Capital Account.

To account for the deceased partner's share of profits during the interim period in the company's financial records, the following journal entry is recorded:

FOR PROFIT-
Debit Profit and Loss Suspense Account and Credit Deceased Partner's Capital Account.
Later Profit and Loss Suspense account is closed by transferring the account to Gaining Partners' Capital Account in their gaining ratio. The journal entry is:
Gaining Partners Capital A/c [In gaining ratio]
       To Profit and Loss Suspense A/c
(P&L Suspense account transferred).