Option (B) Partners' Capital Accounts is correct. Accumulated profits and reserves (like General Reserve) represent profits that belong to the partners of the firm. These are internal to the firm and are not related to the realisation of assets or payment of external liabilities. Therefore, they are not transferred to the Realisation Account. Instead, they are distributed among the partners by transferring them to the Partners' Capital Accounts in their profit sharing ratio. The journal entry for this transfer is: General Reserve A/c Dr. To Partners' Capital A/c (individually). This ensures that the partners receive their rightful share of accumulated profits before the firm's books are closed on dissolution.