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Differentiate between “Realization Account” and “Revaluation Account” . 

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Distinction between Revaluation Account and Realization Account

S. No Basis Revaluation Account Realization Account
1. When Prepared This account is prepared on the Admission , Retirement or Death of a Partner . This account is prepared on the Dissolution of Partnership Firm .
2. Object of Preparation This account is prepared to make necessary Adjustments in the Value of Assets and Liabilities  This account is prepared to find out the Profit or Loss on the Sale of Assets and Repayment of Liabilities 
3. Result Even after the preparation of Revaluation Account , the Firm Continues to Function , though with a Change Relationship among the Partners .  Revaluation Account , the Firm Continues to Function , though with a Change Relationship among the Partners . The Firm comes to an End after the preparation of this account . 
4. Value of Assets and Liabilities Recorded Only the Difference between the Book Values and Revised Values of Assets and Liabilities is Recorded in the Account . Book Value of Assets and Liabilities the realized Value of Assets and the Actual Payment of Liabilities is recorded in this account .
5. Why Prepared This account may be required to be prepared many times during the Life time of a Firm .  This account is prepared only once during the Life Time of a Firm .

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