Accountancy Test

Which one of the following is the correct difference between Realisation and Revaluation Account?

1. Realisation account is prepared at the time of change in profit sharing ratio, while Revaluation account is prepared on admission of partner.

2. Revaluation account may be prepared multiple times, while realisation account is prepared only once in the lifetime of business.

3. Revaluation is prepared for adjustment of Assets and Liabilities, while realisation is prepared for calculating profit or loss on realisation of them.

Question 1/10

By Notice

By Mutual agreement

Compulsory Dissolution

Any of the options

Question 2/10

For Closing the Partnership accounts

For Opening the partnership accounts

For profit sharing

None of the above

Question 3/10

Debited to Rohan’s Capital Account

Debited to Realisation Account

Credited to Realisation Account

Credited to Bank Account

Question 4/10

Partner's Capital

Bank A/c

Realisation Account

Revaluation account

Question 5/10

Transferred to Cash/Bank account

Transferred to Revaluation account

Transferred to Partner's Capital Account

Transferred to Balance sheet

Question 6/10

Only 2

Both 1 & 2

Both 2 & 3

Both 1 & 3

Question 7/10

It is transferred to partner's capital

It is not paid

It is paid in full

None of the above

Question 8/10

Realisation Account

Partner’s Capital Account

Partner’s Loan Account

None of the above.

Question 9/10

Cash/Bank Account

Partner’s Loan Account

Partner’s Capital Accounts

Realisation Account

Question 10/10

Not recorded anywhere

Recorded in realisation account like any other asset

Distributed among partners in old ratio

Partly paid and partly written off