Practice question

Question

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.