On dissolution of a partnership firm, the realization account is debi…

The correct answer is option 1- All assets to be realised.

All asset accounts excluding cash, bank and the fictitious assets, if any are closed by transfer to the debit of Realisation Account at their book values. All other options will be credited to the realisation account.
Following journal entries are passed in all cases:

* All assets to be realised-
Realisation A/c Dr.
  To Assets
(All assets are transferred to the realisation account for closing)

* All outside liabilities of the firm-
 Liabilities Dr.
      To Realisation A/c
(All liabilities are transferred to realisation account)

* Cash received on sale of assets-
 Cash A/c Dr.
    To Realisation A/c
(Cash received against the realisation of assets)

* Any asset taken over by one of the partners-
Partner's Capital A/c
     To Realisation A/c
(Asset taken over by the partner)