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

At the time of dissolution of a partnership firm, the partners' current accounts are transferred to their respective capital accounts.

This is done to consolidate all amounts due to or from each partner into a single account before final settlement. The current account balance (whether credit or debit) represents amounts that the partner is entitled to receive or needs to pay to the firm.

Journal Entry:

When Current Account has a credit balance (amount due to partner):

Particulars	Debit (₹)	Credit (₹)
Partner's Current A/c Dr.	xxx
To Partner's Capital A/c		xxx

When Current Account has a debit balance (amount due from partner):

Particulars	Debit (₹)	Credit (₹)
Partner's Capital A/c Dr.	xxx
To Partner's Current A/c		xxx

After this transfer, only the capital accounts remain active for final settlement. The realisation account shows profit or loss on realisation, which is also transferred to capital accounts. Finally, partners are paid off from their capital accounts in the order: external liabilities first, then partner's loans, and lastly capital.

The correct answer is Option 1: Capital account.