Question

On what account Realisation Account differs from Revaluation Account?

Answer 1

There is the following difference between Realisation Account and Revaluation Account

Basis of difference	Revaluation account	Realisation account
Meaning	It records the effect of the revaluation of the revaluation of assets and liabilities.	It records the actual realisation of assets and settlement of all liabilities
Time of preparation	It is prepared at the at the time of admission retirement and death of a panther.	It is prepared at the time of the dissolution of a firm
Item to be recorded	in this accounts only the items that cause the change in the value of change of assets and liabilities are recorded.	In this account, all the items all assets and liabilities are recorded.
Number of times	This may be prepared on a number of occasions during the lifetime of the firm	This is prepared only once at the time of the dissolution of the firm.
Aim or objective	Its main objective is to make the necessary adjustments liabilities.	Its main objective is to determine the net profit /loss on a realisation of assets and settlement of liabilities