A revaluation Account is also called Realisation Account.

Question

State whether the following statements are true or false with reasons.

A revaluation Account is also called Realisation Account.

Answer 1

This statement is False.

The changes in the values of assets or liabilities on revaluation are recorded in the Revaluation Account. At the time of dissolution of the firm, when Assets or liabilities are disposed off and whatever amounts are paid or received by the firm are recorded in the Realisation Account. So Revaluation Account and Realisation Account are not the same.