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. No balance is left in the bank at the end.

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

The correct answer is option 3- Assertion (A) is not correct but the Reason (R) is correct.

Assertion (A):  Balance at Bank is transferred to Realisation Account at the time of dissolution of partnership firm. THIS IS NOT CORRECT as bank account is made at last in which no balance is left at the end.
Reason (R): Balance at Bank is not to be realized. No balance is left in the bank at the end. THIS IS CORRECT as bank balance if any left is distributed between partners.

*If the partner’s capital account shows a debit balance after all adjustments. 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.