In the case of dissolution of firm, accumulated losses are transferre…

The correct answer is Option (1) → Capital Accounts in Profit Sharing Ratio

Accumulated losses (a debit balance of Profit and Loss Account) belong to the partners, not to the assets being sold, so they never go to the Realisation Account. On dissolution they are written off by debiting the partners’ capital accounts in their profit sharing ratio, the same ratio in which the losses would have been shared when they arose.