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.
Fundamentally, a revaluation surplus and a revaluation reserve is the same. A revaluation reserve is a revaluation surplus obtained from evaluation.
Realization: when sold and coverted to cash (or claims to cash) Recognition: when recorded in the financial statements.
Account Balance
To prepare a realization account, start by listing all the assets and liabilities of the partnership or business being dissolved. Record the sale proceeds of assets on the credit side and any liabilities settled on the debit side. The difference between the total credit and debit will represent the profit or loss from the realization of assets. Finally, transfer the net result to the partners' capital accounts according to their profit-sharing ratio.
The Account balance.
Fundamentally, a revaluation surplus and a revaluation reserve is the same. A revaluation reserve is a revaluation surplus obtained from evaluation.
what is difference between a current account and a cheque account
Realization: when sold and coverted to cash (or claims to cash) Recognition: when recorded in the financial statements.
They are the same.
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Account Balance
The difference between person fund and account fund is that a person fund is transferred to the recipient in person, while the account fund is transferred to the account of the recipient.
To prepare a realization account, start by listing all the assets and liabilities of the partnership or business being dissolved. Record the sale proceeds of assets on the credit side and any liabilities settled on the debit side. The difference between the total credit and debit will represent the profit or loss from the realization of assets. Finally, transfer the net result to the partners' capital accounts according to their profit-sharing ratio.
The Account balance.
what is the different between error of transposition and casting
savings account earns interest.
The main difference between, cash discount is shows in account book but tradediscount does not show in account book.