Arrey, this is the exact question that haunts my sleep! Revaluation Account is for when the partnership *continues*—like adjusting asset values before a new partner joins. Realisation Account is for when the firm *dissolves*—everything gets sold off. So, journal entries about changing asset values go to Revaluation, and entries for selling assets go to Realisation.
I remember this only because of my tuition sir's silly example: "Imagine your father's old scooter's value going up in the books—that's revaluation. Now imagine actually selling it off to the *kabadiwala*—that's realisation!" It stuck, even if my own head feels like it's been through a realisation account right before boards.
#life#career
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