There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-

Assertion: Revaluation account and realisation account are the same.
Reasoning: We need to bring the value of assets and liabilities to their current values by preparing revaluation account otherwise the incoming partner may have an advantage/disadvantage because of the change in values.

Assertion (A) is not true but Reasoning (R) is correct.

The correct answer is option 4- Assertion (A) is not true but Reasoning (R) is correct.

Assertion: Revaluation account and realisation account are the same. This is not true as both accounts are different. Revaluation account is made to revalue the assets and reassess the liabilities whereas realisation account is prepared to close the books of accounts of firm.

Reasoning: We need to bring the value of assets and liabilities to their current values by preparing revaluation account otherwise the incoming partner may have an advantage/disadvantage because of the change in values. This is true. Revaluation Account is credited with all increases in the value of assets and decrease in the value of liabilities. This account is debited with decrease in the of value of assets and increase in the value of liabilities. Revaluation account is made at the time of admission or retirement of partner. It is made at the time of admission of partner so that any new partner does not get any advantage or disadvantage.

Thus, assertion is not true but reason is true.