On dissolution of the firm, partner's capital accounts are closed through:
- ARealisation Account
- BDrawings Account
- CBank Account
- DLoan Account.
Solution & Step-by-step Explanation
In the concluding steps of a partnership firm's dissolution process, once all assets are realized and standard external liabilities are cleared through the Realisation Account, the surviving final cash balances are utilized to close the partners' capital balances. Any surplus is paid off or deficiency is brought in via the Bank Account (or Cash Account).