Difference between Revaluation account and Memorandum Revaluation Account
| Basis | Revaluation Account | Memorandum Revaluation Account |
| Effect on the Balance sheet | A revaluation Account is prepared when the assets and liabilities are shown in the new balance sheet at the revalued figures. | Memorandum Revaluation Account is prepared when the assets and liabilities are shown in the new balance sheet at their old or unaltered figures. |
| Parts | It is not divided into two parts. It is prepared to record the increase and decrease in the value of assets and liabilities. | It is divided into two parts. First part is prepared to record the increase or decrease in the value of assets and liabilities and the second part is prepared to nullify the changes in the first part. |
| Transfer of profit or loss | The balance of the revaluation account(profit or loss) is transferred to Old Partners Capital Accounts in their old profit-sharing ratio. | The balance of the first part (Profit or loss) is transferred to the Capital Accounts of Old Partners in their old profit-sharing ratio. The balance of the second part is transferred to all Partners Capital Accounts (including new partners in case of admission and continuing partners in the case of retirement of a partner) in their new profit sharing ratio. |
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Very helpful, thanks