Hello Archana,

Yes, at the time of dissolution of a partnership firm , a Revaluation Account (also called Profit & Loss Adjustment Account ) is not prepared .

Instead, a Realisation Account is prepared to record:

1. Sale of assets
2. Payment of liabilities
3. Distribution of any profit or loss on dissolution

A Revaluation Account is only prepared at the time of reconstitution (admission, retirement, or change in profit-sharing ratio), not at the time of dissolution .

I hope this answer helps you. If you have more queries then feel free to share your questions with us we will be happy to assist you.

Thank you and wishing you all the best for your bright future.

Hello,

At the time of the dissolution of a partnership firm, a Revaluation Account is not prepared . Instead, a Realisation Account is prepared to record the sale of assets, payment of liabilities, and distribution of remaining funds among partners.

Revaluation Account is only prepared when there is a reconstitution of the firm (like admission, retirement, or change in profit-sharing ratio), not during dissolution.

Hope it helps !