At the time of dissolution of partnership firm, which of the following account (s) is/are prepared?

All of the above

The correct answer is option 4- All of the above.

On dissolution, the books of the firm are to be closed. Dissolution process starts by opening the following accounts in the firm’s books: Realisation Account, Partner’s Loan Account, Partners’ Capital Accounts, Bank or Cash Account. Since a partnership ceases to exist after dissolution, it doesn't require a balance sheet to represent its financial position. The dissolution process aims to settle all claims and close the firm. The following accounts are prepared for the dissolution of the firm-

* Realisation Account: This account tracks the process of converting assets of the partnership into cash to settle liabilities and distribute remaining funds to partners. It reflects the profit or loss arising from the sale of assets.

* Partner's Capital Accounts: These accounts show the initial capital contributions, drawings, and final capital balances of each partner after considering their share of the dissolution process.

* Cash/Bank Account: This account remains relevant during dissolution. At the end bank/Cash account shows zero balance.