On dissolution of a firm, partner's loan account is transferred to:

A loan advanced by a partner to the firm is an internal liability, but it ranks ahead of capital repayments. Therefore, it is not closed out into the Realisation Account (which handles external liabilities) nor mixed directly into the Capital Account.Instead, a separate Partner's Loan ledger is maintained and settled directly through an entry paid out of the Bank/Cash Account:
$$\text{Partner’s Loan A/c}\text{Dr.}$$
$$\text{To Bank A/c}$$