Question

State whether the following statements is true or false :

Revaluation account is also called Realisation account.

Options

• True

• False

Answer 1

False

Explanation: Revaluation Account is different from Realisation Account. Revaluation Account is prepared at the time of admission, retirement or death of a partner, which records the effect of changes in the value of assets and liabilities, whereas, Realisation Account is prepared at the time of dissolution of a firm to record the realisation of assets and settlement of liabilities.