On dissolution of a firm, bank overdraft is transferred to :

The correct answer is Option (3) → Realisation Account

On dissolution, the firm closes all its books through the Realisation Account. Every external liability, including a bank overdraft, is transferred to the credit of the Realisation Account; when the overdraft is later paid off, Realisation Account is debited and Bank (or Cash) is credited.

Option (1) Cash Account — Incorrect. Cash Account is credited only when the overdraft is actually paid; the balance itself is not transferred there.

Option (2) Bank Account — Incorrect. The overdraft already sits in the bank account of the firm; on dissolution that liability is moved out to the Realisation Account, not kept in the Bank Account.

Option (4) Partner's Capital Account — Incorrect. Partners' capital accounts receive only the final profit or loss on realisation and the final settlement; outside liabilities do not go to them.