At the time of dissolution of partnership firm following accounts are prepared:

(A) Revaluation A/c
(B) Partner's capital A/c
(C) Balance sheet
(D) Realisation A/c
(E) Cash/Bank A/c

Choose the correct answer from the options given below.

(B), (D) and (E) only

The correct answer is Option (2) → (B), (D) and (E) only

(B) Partner's Capital Account: Partners capital accounts are prepared to determine the amount due to each partner or any amount payable by them to the firm after the assets are realized and liabilities are paid off.

(D) Realization Account: Realization account is prepared to sell the assets and settling the liabilities. They are used to record the realization of assets and the payment of liabilities, and to ascertain the profit or loss on realization which is distributed between partners in their profit sharing ratio.

(E) Cash/Bank Account: This account is prepared to record the cash and bank transactions during the dissolution process. It is prepared to close the books of account. The debit and credit side of this account comes to same.

(A) Revaluation A/c - It is prepared at the time of reconstitution of the partnership firm like admission, retirement or death.
(C) Balance sheet- It is prepared at the end of the year to know the financial position of the firm. And in case of dissolution the accounts are closed. So, there is no need of balance sheet.