Partnership a/c = advanced accountancy (ipcc)

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 Dear Sir,
Please explain the difference between Realisation A/c and Revaluation A/c i.e when we had to prepare this a/c

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 March 2014 Time of preparation

Revaluation accounts is prepared when there is reconstitutions of partnership i.e. new partner.

realisation a/c is prepared when there is dissolution of firm.

Contents

Revaluation a/c records the increase or decrease in the value of assets and Liabilities of the firm.

Realization a/c records sale/disposal of various assets and disposal of liabilities of the firm.

Objectives

Revaluation a/c's objects is to ascertain net profit or loss on revaluation of assets and liabilities.

Realization a/c's object is to find out profit or loss on realisation of assets and payment / disposal of liabilities.

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