What will be the journal entry for transferring the debit balance of current account to capital account at the time of dissolution of partnership firm?

Partner Capital A/c Dr.
   To Partner’s Current A/c
(Transferring balance of current account to capital account)

The correct answer is option 1-
Partner Capital A/c Dr.
   To Partner’s Current A/c
(Transferring balance of current account to capital account)

Debit balance of current account makes the capital account of partner reduce to that amount of current account. Capital account balance is reduced by the debit balance of current account. This entry reflects the transfer of the debit balance from the partner's current account to their capital account. This adjustment is made because, at dissolution, the balance in the current account needs to be adjusted against the partner's capital account to accurately reflect each partner's final share of the firm's assets and liabilities.