Revaluation account is for adjusting asset values when a partner joins or leaves, while realisation account is for selling off assets during dissolution. The journal entries for profit or loss on revaluation go to partners' capital accounts, but realisation entries close all books. I know this because I corrected these entries a hundred times for my Delhi university exams, desperate for that scholarship to lift my family. But the obvious textbook answer forgets that in a small business, like my father's tractor repair, we never made such neat entries—we just did the *jugaad* and divided what was left.
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