What is difference between revaluation account and realization account?

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1148684

2026-03-16 09:20

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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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