Differentiate between Realisation Account & Revaluation Account.

Dear Student,

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

Regards

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