— Kishore V, SME and ACW at Edumarz
Basis of difference | Revaluation account | Realisation account |
Meaning | It keeps track of the impact of asset and liability revaluation. | It keeps track of the assets that have been realised and the obligations that have been settled. |
Time of preparation | It is created at the moment of a partner’s admission, retirement, or death. | It is prepared at the moment of a company’s demise. |
Items to be recorded | Only things that produce a change in the value of assets and liabilities are recorded in this account. | All things – assets and liabilities – are documented in this account. |
A number of times | This might be done several times during the course of the company’s existence. | This is only prepared once, at the moment of the firm’s dissolution. |
Aim or objective | Its major goal is to make the appropriate changes and obligations. | Its primary goal is to calculate the net profit/loss on asset realisation and liability settlement. |