You can shrink the transaction log file if you change the recovery mode from full to simple, using following commands: 

ALTER

DATABASE
myDatabase
SET


RECOVERY SIMPLE


DBCC
SHRINKDATABASE
(
myDatabase
,

5
)

then you switch back to full recovery

ALTER

DATABASE
myDatabase
SET
RECOVERY
FULL

Hi gsreddy,

Space permitting, I would recommend that you just increase the size of your log file for now. The article shows how you can increase the file size using SQL Management Studio or a Transact SQL statement. For more information please see the following article: http://technet.microsoft.com/en-us/library/ms175890.aspx.

Alternatively, if you are running low on space, you can add another log file to the DB and point it to a different location. For more on this, please see: http://technet.microsoft.com/en-us/library/ms175890.aspx.

Simply setting the log file growth to unlimited, should get you past the problem. But, I would start thinking about performing some DB maintenance in the semi-near future. Here is a nice little article that explains a couple of backup stratagies: http://technet.microsoft.com/en-us/library/ms191239(v=sql.105).aspx

Production Database:
1- Database Must be in Full Mode Option.
2- This is trace of how transaction database grow rapidly.

Finally: we need straight forward best practice for this PROBLEM, and if it is not K2 thing,
we need the not K2 thing solution to solve The K2 PROBLEM.

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As a temporary solution, create schedule job backup transaction database log every one hour, and create another schedule to delete trn files every 5 hours or set time.

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