Partner's current accounts are transferred to the respective partners...................at the time of dissolution of a partnership.

Capital account

The correct answer is option 1- Capital account.

Partner's current accounts are transferred to the respective partners Capital account at the time of dissolution of a partnership.

All dissolution-related transactions are initially recorded in the partners' current accounts if fixed capital method is followed. Once all transactions are completed, and the final balances are determined, these balances are then transferred to the capital accounts. Capital accounts are then prepared to know the credit or debit balance of partners.