DIFFERENCE BETWEEN REVALUATION ACCOUNT AND REALISATION ACCOUNT :

Revaluation Account	Realisation Account
(i) The effect of the revaluation of assets and liabilities is recorded in revaluation account.	(i) It records the sale of various assets and payment of liabilities.
(ii) Revaluation account is prepared at the time of reconstitution of the firm.	(ii) It is prepared only at the time of dissolution of the firm.
(iii) Revaluation account is prepared to find out the profit (loss) on the revaluation of assets and liabilities.	(iii) Realisation account is prepared to find out the profit (loss) on the realization of assets and settlement of liabilities.
(iv) It contains only those assets and liabilities which are revalued.	(iv) It contains generally all assets and liabilities.
(v) The balance of this account is transferred to the old partners’ capital accounts.	(v) The balance of this account is transferred to the capital accounts of all partners.
(vi) Accounting entries are made on the basis of the difference between book value and revalued figures.	(vi) Accounting entries are made at the book values of assets and liabilities.
(vii) On revaluation, the accounts of assets and liabilities are not closed.	(vii) The accounts of assets and liabilities are closed on preparation of realization account.