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An asset realisation account is a financial record used to track the process of converting assets into cash or cash equivalents, typically during liquidation or the winding up of a company. It documents the sale of assets, the expenses incurred in the sale process, and the net proceeds received. This account helps stakeholders understand the value recovered from assets and the efficiency of the liquidation process, ensuring transparency and accountability. Ultimately, it plays a crucial role in determining the distribution of funds to creditors and stakeholders.

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4w ago

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What is difference between revaluation account and realization account?

Revaluation account and Realisation account both are nominal account. the purpose of revaluation account is taking the effect of fluctuations in asset & liabilities in their books while purpose of realisation account is to closing the books of accounts of a comapany or a firm. Revaluation a/c is made when any fluctuation in value of an asset takes place. realisation a/c is made at the time of liquidation of a company or a firm.


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