What is the requirement regarding the closure of books in case of 'Dissolution of Partnership firm'?

Books of account are closed

The correct answer is option 4- Books of account are closed.

In the dissolution of a partnership firm, it is necessary to close the books of account. Closing the books of account means finalizing the financial records and bringing them to a conclusion. This is done to finalize the financial affairs of the partnership, determine the partners' respective shares, and comply with legal and regulatory requirements.