When realisation expenses are paid during the dissolution of a partnership firm, the journal entry recorded is:
Realisation Account Dr.
To Bank Account
Realisation Account is debited because these expenses are incurred specifically for the realisation process (converting assets into cash and settling liabilities). All such expenses - whether it's for auctioneer's fees, legal charges, or any other dissolution-related costs - are treated as charges against the realisation process itself.
Bank Account is credited (not debited) because cash is going out of the business to pay these expenses.
It's important to note that no separate "Realisation Expense Account" is opened. All expenses related to dissolution are directly recorded in the Realisation Account itself, making it a comprehensive record of the entire realisation process. The profit or loss on realisation (which includes these expenses) is ultimately transferred to the partners' capital accounts in their profit-sharing ratio.