Option C is correct because during dissolution, partner's capital accounts are settled and closed through the Bank Account. As per the textbook context, partners with debit balances in their capital accounts bring in necessary cash (Bank A/c Dr. To Partner's Capital A/c), while partners with credit balances are paid off (Partners' Capitals A/cs Dr. To Bank A/c). The aggregate amount finally payable to partners equals the amount available in bank and cash accounts. Thus, all accounts including capital accounts are closed through the Bank Account.