Question

difference between revaluation a/c and realisation a/c

Answer 1

Difference between revaluation account and realisation account.

Revaluation Account :-
1) It records the increase or decrease in the value of assets and liabilities.
2) It is prepared at the time of reconstitution of a firm eg. on the retirement, admission or death of a partner.
3) It is prepared to ascertain profit or loss due to change in the value of assets and liabilities.

Realisation Account :-
1) It records the sale proceed of assets and payments of liabilities.
2) It is prepared at the time of dissolution of a firm.
3) It is prepared to know about profit or loss on sale of assets and payment of liabilities.

Answer 2

Answer:

REALISATION ACCOUNT:

1. prepared at the time of dissolution of firm
2. prepared to find out the profit or loss on realisation of assets and payment of liabilities
3. in this account all assets and liabilities are recorded at book value usually dissolution expenses are shown in this account
4. usually dissolution expenses are shown in this account

REVALUATION  ACCOUNT:

1. prepared at the time of admission, retirement or death of a partner
2. prepared to find out profit or loss on revaluation of assets and reassessment of liabilities
3. in this account only changes in the value of assets and liabilities are recorded
4. no expenses are shown in this account

Explanation: