In the case of a dissolution of a firm, accumulated losses are transferred to:

Capital Accounts in Profit Sharing Ratio

The correct answer is option 4- Capital Accounts in Profit Sharing Ratio.

In the case of a dissolution of a firm, accumulated losses are transferred to  Capital Accounts in Profit Sharing Ratio.

Sometimes a firm may have accumulated profits not yet transferred to capital accounts of the partners. These are usually in the form of general reserve, reserve and/or Profit and Loss Account. These are distributed among the partners by transferring it to their capital current accounts in old profit sharing ratio. Similarly, if there are some accumulated losses in the form of a debit balance of profit and loss account and/or deferred revenue expenditure appearing in the balance sheet of the firm, they are also debited to partners capital A/c.