Question

Difference between revaluation and memorandum revaluation account

Answer 1

hey mate here is your answer

Explanation:

1) revaluation account is prepared when assets and liabilities are shown in balance sheet with their new values.

while memorandum revaluation account is prepared when assets and liabilities are shown in balance sheet with their old values.

2) revaluation account is not divided into two parts.

while memorandum revaluation account is divided into two parts.

3) the balance of revaluation account (profit or loss) is transferred to old partners in old ratio.

while in memorandum revaluation account the balance of first part (profit or loss) is transferred to old partners in old ratio. The balance of 2nd part (profit or loss) is transferred to all partners capital account .

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Answer 2

Answer:

Explanation:

But the difference between the two is that in Memorandum Revaluation Account is divided into two parts. ... The profit or loss from the revaluation is transferred to the Old partners- for admission (or All Partners- for retirement and death) in their old ratio