Ah, revaluation and realisation—both are for when a partnership changes, no? Revaluation is when partners continue but revalue assets, like adjusting our shop's old fridge value before my sister joined me. Realisation is when they close the firm and sell everything off, like when my cousin's bakery shut down—such a sad process.
In our ISC days, I always mixed up which journal entry went where! But running this shop taught me: revaluation entries go to the partners' capital accounts, because the business goes on. Realisation entries go to the realisation account itself, to settle all dues. My accounts teacher would shake his head—I learned more from my ledger book here than in class.
#life#career
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