Differentiate between Realisation Account & Revaluation Account.
Dear Student,
Difference between Realisation Account and Revaluation Account:
Regards
Difference between Realisation Account and Revaluation Account:
Basis | Realisation | Revaluation |
Meaning | It records sale of assets and payment of liabilities | It records increase/decrease in the value of assets and liabilities |
Time | It is prepared at the time of dissolution of a firm | It is prepared at the time of reconstitution of a firm |
Purpose | Prepared to know profit or loss on sale of assets and payment of liabilities | Prepared to ascertain profit or loss due to change in the value of assets and liabilities |
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