Debit items in partnership dissolution account

Steps:

• Identify the dissolution (realization) account purpose: transfers assets/liabilities and records gains/losses during partnership winding up.
• Debit side records: assets at book value (item 1), unrecorded assets/goodwill adjustments (item 2), and dissolution expenses (item 4).
• Credit side records: liabilities assumed (item 3) and cash inflows from asset sales.
• Select options including only debit-side items: 1, 2, and 4.

Why B is correct:

• B includes all standard debit entries (assets, goodwill/provisions, expenses) per partnership accounting rules in dissolution.

Why the others are wrong:

• A omits expenses (4), a key debit.
• C omits goodwill adjustment (2), a debit item.
• D omits assets (1), the primary debit transfer.

Not enough information on exact items 1–4, but assuming standard dissolution entries.

Final answer: B