On dissolution of partnership firm, the loss calculated in realisation account is debited/credited to which account?

Partners’ Capital Account

The correct answer is option 1- Partners’ Capital Account.

On dissolution of partnership firm, the loss calculated in realisation account is debited to Partners’ Capital Account.

For transfer of profit and loss on realisation, the following journal entries are passed:

(a) In case of profit on realisation-
     Realisation A/c Dr.
          To Partners’ Capital A/c (individually) A/c

(b) In case of loss on realisation-
     Partners’ Capital A/c (individually) Dr.
         To Realisation A/c