There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Balance at Bank is transferred to Realisation Account at the time of dissolution of partnership firm.
Reason (R):  Balance at Bank is not to be realized but instead distributed in its present form.

Assertion (A) is not correct but the Reason (R) is correct.

*If the partner’s capital account shows a debit balance after posting of rebount entries firms. He brings in the necessary cash for which the entry will be:
  Bank A/c Dr.
   To Partner’s Capital A/c
*The balance is paid to partners whose capital accounts show a credit balance and the following entry is recorded.
  Partners’ Capitals A/cs (individually) Dr.
      To Bank A/c
*It may be noted that the aggregate amount finally payable to the partners must equal to the amount available in bank and cash accounts. Thus, all accounts of a firm are closed in case of dissolution.