When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

Partners capital account

The correct answer is option 2- Partners capital account.

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to Partners capital account.

When the Realisation Expenses paid on behalf of partner by firm, the following journal entry is passed-
Partner's capital A/c Dr.
      To cash A/c.
This journal entry shows that the on behalf of partner, the firm had paid the realisation expenses due to which their account is debited with the amount of realisation expenses. By debiting the partner capital account, their capital balance decreases.