Answer / keerthi d&

Provisision is nothing but,keeping aside out of profits to
bear the uncertain losses in the future.. so provisions
are made to set off the losses of a company or a business
concern which will occur in the future period..
different types of provisions are:-
1.provision for depriciation (on plant & machinary, land &
buildings, accessories, etc..)
2.provision for bad debts (on debtors,bills recievables,
etc..)
3.provision for uncertain losses(fire, theft. spoilage
etc..)

Answer / ammu

provision are made because they are payable in future not
or next accounting year.

JOURNAL ENTRY

company pay gratuity and each year an entry is pass for the
same which is called Provision for gratuity

so entry will be

Gratuity A/c dr
Provision for Gratuity a/c

this is a provision entry ( above )

Profit & loss a/c DR
Gratuity A/c

Answer / sajjad1

When Provosion is Made then Pass This Entry

Gratuity Fund (Dr)
Provision for Grauity Fund (Cr)
When Its Occur

Provision for Grauiyy Fund (Dr)
Bank/Casg (cr)

Answer / acca

AS per IAS 37 , provision is a liability with the uncertain amount and timing. 

recognized provision as Liability when these condition meet.

1)Present obligation: under which consider two obligation legal obligation and constructive obligation.

 2) Past event 

 3) future outflow of cash is probable 

 4) the amount of provision can be measure reliably at the time of book provision.

As per IAS 37 can be recognized certain things as provision. 

Doubtull debt 
depreciation

in the case of gratuity:at the time of occurs 

Dr: Gratuity Exp a/c
Cr: provision for gratuity a/c 


provision of liability should be account in the statement of financial position at the present value if its beyond more than one year.  

what are micro-cap, small-cap, mid-cap, large-cap companies?

0 Answers   Mellon,

---

What do you mean by Amortization?

9 Answers  

---

proposed devidend is approved by .... options are: A.BOD B.share holder C.SEBI D.general body meeting

1 Answers  

---

What are the two motives of business?

9 Answers   Deloitte,

---

what is Tds %,Service tax %,Cess %,and ESI,PF %,and what is the use of this.

0 Answers   CA,

---

I am pursuing MBA in finance and I am having the work experience of 2 years as a customer support executive in Lg electronics. So,Please suggest me whether I can show this experience at the time of interview or not?

1 Answers  

---

Contra Entry: I have deposited some amount from company account kannur branch to H.O. bank account. both pnb. What will be the contra entry for this transaction?

4 Answers  

---

CAN ANY OF U TELL ME WHAT QUESTION ACTUALLY ASK IN OPERATION ROUND IN BA CONUTNNIUM SOLUTION

0 Answers  

---

EXPAND______________RDO

2 Answers  

---

received interest on delay of payment of against of receipts accounting books will treat indirect income or direct income

1 Answers  

---

I want to become CFA so kindly provide me all information regarding this like fees structure,colleges in mumbai,duration etc.

0 Answers  

---

Short Answer on ___________Finance Bill

0 Answers  

---