On what account Realisation Account differs from Revaluation Account?
On what account Realisation Account differs from Revaluation Account?
There is the following difference between Realisation Account and Revaluation Account
Basis of Difference Revaluation Account Realisation AccountMeaning It records the effect of revaluation ofIt records the actual realisation of assets and liabilities.of assets and settlement of all liabilities.Time of preparation It is prepared at the time of admission, It is prepared at the time of retirement and death of a partner. dissolution of a firm.Items to be recorded In this account, only the items thatIn this account, all the items - all assets cause change in the value ofand liabilities are recorded. assets and liabilities are recorded. Number of times This may be prepared on a numberThis is prepared only once, i.e., of occasions during the lifetime of the firm.at the time of dissolution of the firm.Aim or objective Its main objective is to makeIts main objective is to determine necessary adjustment and liabilities.the net profit/loss on realisation of assets and settlement of liabilities.
There is the following difference between Realisation Account and Revaluation Account
Basis of Difference Revaluation Account Realisation AccountMeaning It records the effect of revaluation ofIt records the actual realisation of assets and liabilities.of assets and settlement of all liabilities.Time of preparation It is prepared at the time of admission, It is prepared at the time of retirement and death of a partner. dissolution of a firm.Items to be recorded In this account, only the items thatIn this account, all the items - all assets cause change in the value ofand liabilities are recorded. assets and liabilities are recorded. Number of times This may be prepared on a numberThis is prepared only once, i.e., of occasions during the lifetime of the firm.at the time of dissolution of the firm.Aim or objective Its main objective is to makeIts main objective is to determine necessary adjustment and liabilities.the net profit/loss on realisation of assets and settlement of liabilities.
