The Total solution for NCERT class 6-12
Basis of Comparison
Realisation Account
Revaluation Account
Meaning
It is an account that is prepared to determine the net profit or loss on sale of assets and discharging of liabilities of the firm
It is an account that is prepared to determine variation in value of liabilities and assets of a firm.
Comprises of
All Liabilities and assets
Only those liabilities and assets that are revaluated
Time of preparation
During dissolution of firm
During firm restructuring
Frequency of Preparation
One time, when firm is dissolved.
As and when a new partner is introduced or an existing partner leaves the firm
Effect
All accounts related to liabilities and assets are closed
There is no account closure when revaluation happens
Records
Records all the Liabilities and assets
Records liabilities and assets whose value changed over a period.