Which of the following statement is true ?

The correct answer is Option (3) → The balance amount in decreased Partner's Capital is credited to his Executor's A/c.

The accounting on death is the same as on retirement, except that the amount due to the deceased partner is transferred to his Executors' Account, and his claim includes his share of profit up to the date of death.

Option (1) Decreased partner is not given share in profit if he dies in mid of the year as he has not rendered services for the entire year. — Incorrect. A partner who dies during the year is given his share of profit from the date of the last balance sheet to the date of death.

Option (2) The amount payable to decreased partner is transferred to his Loan A/c. — Incorrect. Transfer to a loan account is the treatment for a retiring partner who is not paid at once; for a partner who has died, the amount goes to his executors.

Option (3) The balance amount in decreased Partner's Capital is credited to his Executor's A/c. — Correct. The balance of the capital account of the partner who has died is credited to his Executor's Account, and the payment is made to the executors.

Option (4) The decreased partner's share in profit is calculated on the basis of turnover method only. — Incorrect. His share of profit up to the date of death may be worked out on the time basis or on the turnover (sales) basis, not on turnover alone.