Unrecorded Liabilities when paid are shown in:

The correct answer is Option (1) → Debit of Realisation Account

An unrecorded liability is not in the books, so it never reaches the Realisation Account by transfer. When it is paid on dissolution, the payment is a loss of realisation, so the entry is Realisation A/c Dr. To Bank A/c. It therefore appears on the debit side of the Realisation Account (and on the credit side of the Bank Account).