Which of the following statement(s) is(are) correct :

Statement 1 : The entropy of isolated system is always maximized at equilibrium
Statement 2 : It is possible for the entropy of closed system to decrease in an irreversible process
Statement 3 : Entropy can be created but cannot be destroyed
Statement 4 :  $\Delta S_{system}$ is always zero for reversible process in an isolated system

All spontaneous processes are those where total entropy i.e. system + surroundings increases
Thus, (a), (c), (d) are true.
Basically, time moves in the direction where entropy of universe increases.
Now, in (b), we have a closed system, i.e. even through matter can’t move into or out of system, energy can.
Clearly, (b) can also be true if entropy of surroundings increase more than decrease of entropy of system.