On dissolution of the firm, partner's capital accounts are closed through:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Bank Account
After the realisation profit or loss, reserves and losses are transferred, each partner’s capital account shows what the firm owes him or what he owes the firm. It is closed by the final payment to or from him, so the last entry is through the Bank (or Cash) Account.
NCERT (2026-27 edition):
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