Distinction between Revaluation Account and Realization Account
| S. No | Basis | Revaluation Account | Realization Account |
| 1. | When Prepared | This account is prepared on the Admission , Retirement or *** of a Partner . | This account is prepared on the Dissolution of Partnership Firm . |
| 2. | Object of Preparation | This account is prepared to make necessary Adjustments in the Value of Assets and Liabilities | This account is prepared to find out the Profit or Loss on the Sale of Assets and Repayment of Liabilities |
| 3. | Result | Even after the preparation of Revaluation Account , the Firm Continues to Function , though with a Change Relationship among the Partners . | Revaluation Account , the Firm Continues to Function , though with a Change Relationship among the Partners . The Firm comes to an End after the preparation of this account . |
| 4. | Value of Assets and Liabilities Recorded | Only the Difference between the Book Values and Revised Values of Assets and Liabilities is Recorded in the Account . | Book Value of Assets and Liabilities the realized Value of Assets and the Actual Payment of Liabilities is recorded in this account . |
| 5. | Why Prepared** | This account may be required to be prepared many times during the Life time of a Firm . | This account is prepared only once during the Life Time of a Firm . |
