My Profile [view full profile]. Inform you about time table of exam. Inform you about new question papers. New video tutorials information. Realisation Account. It records the sale of various assets and payment of various liabilities. To find profit or loss on realisation of assets and payment of liabilities. When It prepared. When there is any change in the partnership deed. Like admission of Partner, Retirement of Partner, and death of Partner.
At the time of the dissolution of the firm. Effects on accounts. In this account, the assets, and liabilities, accounts are revaluated not closed. In this account, the assets and liabilities, accounts are closed. How many time it can be prepared. It can be prepared many times in the whole life of the firm. It can be prepared only one time when the firm is closed.
Only those assets and liabilities are treated which are revaluated. The main purpose of the preparation of revaluation account is that whatever the profit earned or loss suffered belongs to the partners who existed in the firm.
Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Revaluation and Realisation Account The points given below are noteworthy so far as the difference between revaluation and realisation account is concerned: An account opened by the firm to know whether there is any change in the value of assets and liabilities of the firm, during reconstitution, is Revaluation account.
On the other hand, realisation account is an account prepared to ascertain the net profit or loss on the sale of assets or discharge of liabilities, during dissolution.
Revaluation account comprises of only those assets and liabilities, whose values are revised. Conversely, realisation account contains all the assets and liabilities. These two accounts mainly differ in relation to the time of preparation of the two, i. Revaluation account is prepared at various events like admission, retirement or death of partners.
Unlike realisation account is prepared only once, and that is when the firm discontinues its operations. In the case of revaluation account, accounting entries are made on the basis of the difference in the book value and the revalued amount of assets and liabilities. As against this, accounting entries are made at the book value of the assets and liabilities. Praveen Leo. Farhan Ali. Adv Muhammad Wasim Awan.
Shuvro Rahman. Ca Dhruv Agrawal. Abhi Tagores. Css Aspirant. Samson Koshy. Nidhi Bhardwaj. Anuj Chauhan. Nikki Estores. Mais de shabukr. Chirag Parmar. Populares em Business.
0コメント