If realisation expenses are paid by partner on behalf of the firm jou…

The correct answer is Option (4)-
Realisation A/c Dr
          To partner's capital A/c

 

For payment of realisation expenses-

(a) When some expenses are incurred and paid by the firm in the process of realisation of assets and payment of liabilities:
Realisation A/c Dr. To Bank A/c

(b) When realisation expenses are paid by a partner on behalf of the firm:
Realisation A/c Dr. To Partner’s Capital A/c

(c) When a partner has agreed to bear the realisation expenses:
(i) if payment of realisation expenses is made by the firm Partner’s Capital A/c Dr. To Bank A/c
(ii) if the partner himself pays the realisation expenses, no entry is required.