Question

Differentiate between Realisation Account and Revaluation Account.

Answer 1

Revalutaion Account	Realisation Account
1. Prepared at the time of admission, retirement or death of a partner.	1. Prepared at the  time of dissolution of a firm
2. It is prepared to show the assets and liabilities at their revised values and to know the profit or loss arising therefrom.	2. It is prepared to know the profit or loss on the sale of assets and payment of liabilities
3. Increase or decrease in the value of assets and liabilities are recorded.	3. Assets and liabilities are shown at the book values.
4. Firm continues even after its preparation.	4. Firm is dissolved after its preparation.