When liquidation expenses are paid and borne by the seller company, then it is debited to

The correct answer is A. Realization A/c.

Realization account is a temporary account used to record the assets and liabilities of a company that is being liquidated. The expenses incurred in the liquidation process are debited to the realization account. The balance in the realization account is transferred to the profit and loss account.

Bank account is a permanent account used to record all transactions involving cash and bank balances. Goodwill account is a permanent account used to record the excess of the purchase price of an asset over its fair value.

Option D is incorrect because liquidation expenses are not related to goodwill.