Question

Give any two differences between revaluation account and realisation account.

Mention any two differences between revaluation account and realisation account.

Answer 1

S.No.	Revaluation Account	Realisation Account
1.	It records the effect of revaluation of assets and reassessment of liabilities.	It records the realisation of assets and settlement of liabilities.
2.	It is prepared at the time of admission, retirement or death of a partner.	It is prepared at the time of dissolution of the firm.
3.	Only changes in the value of assets and liabilities are recorded.	The book value of all realisable assets and outside liabilities are recorded.
4.	Entries relating to assets and liabilities are made on the basis of difference between the book values and revalued figures.	Entries relating to assets and liabilities are made on the basis of their book values and actual payments.
5.	The account may be prepared a number of times during the life of the firm.	The account is prepared only once during the life time of the firm at the time of its dissolution.
6.	As a result of entries posted in the account the accounts of assets and liabilities are not closed.	As a result of entries posted in the account, the accounts of assets and liabilities are closed.