G, K, and B are partners sharing profits and losses in a specific ratio. Due to losses, they decided to dissolve their partnership. They have capital balances and assets, but also liabilities and expenses to settle.
G paid the realisation expenses of ₹ 30,000 on behalf of the firm. This means G is effectively contributing to the firm's costs, which will affect his capital account.
The correct entry for the realisation expenses is:
Realisation A/c Dr.
To G's Capital A/c
This shows that the expense reduces G's capital because he paid it for the firm.
So, the answer is Option 2.