All assets (except cash/bank and fictitious assets) are transferred to the _____ side of _____ Account.

Debit/Realization

The correct answer is Option (4) → Debit/Realization

When a partnership firm is dissolved:

• All assets (except cash/bank and fictitious assets) are transferred to the debit side of the Realization Account. This is because the Realization Account is prepared to record the sale/realization of assets and settlement of liabilities.

• Liabilities are transferred to the credit side of the Realization Account.

• Finally, profit or loss on realization is transferred to the partners’ Capital Accounts in their profit-sharing ratio.