The correct answer is C. Realisation account.
A realisation account is a temporary account opened to record the sale of assets and the settlement of liabilities of a partnership firm on its dissolution. The account is closed by transferring the balance to the partners’ capital accounts in their profit-sharing ratio.
A revaluation account is a temporary account opened to record the revaluation of assets and liabilities of a partnership firm on its dissolution. The account is closed by transferring the balance to the partners’ capital accounts in their profit-sharing ratio.
A profit and loss adjustment account is a temporary account opened to record the adjustments to the partners’ capital accounts on the dissolution of a partnership firm. The account is closed by transferring the balance to the partners’ capital accounts in their profit-sharing ratio.
A profit and loss appropriation account is a permanent account opened to record the appropriation of profit or loss of a partnership firm. The account is closed by transferring the balance to the partners’ capital accounts in their profit-sharing ratio.