what is the differace between depreciation and provision

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Question Posted / srinivas07t

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what is the differace between depreciation and provision..

Answer / parvinder singh

If the actual decrease in the value of an assets happen,
then it is known as depreciation but if we analyse with the
books of accounts that the value of an assets decrease in
the future, it is known as provision of depreciation. For
eg if the value of an assets in 10000 INR and we had
already made some provision for futre to decrease by 5%
then in next financial year it shows only 9500 as value in
the books of accounts but if the actual decrease in the
value of an assets in 7% then actual depreciation is Rs 700
but provision made of only 500.

Is This Answer Correct ?

47 Yes

6 No

what is the differace between depreciation and provision..

Answer / bloody idiot

Depriciation is provided as a cost throught life of the
Asset, It is a nominal charge for Utilisation of the Asset
and represnts reduction in the Value of the Asset
throughout its life.

Provision for Depriciation is the expense provided for in
the current Financial Year in the absense of Actual
Depriciation. In the next year the actual Depriciation of
Prev. year is reduced from Book Value and also reduced from
Liability(Provision)

Is This Answer Correct ?

17 Yes

5 No

what is the differace between depreciation and provision..

Answer / pravin sharma

depreciation is used for assets value decrease and provision
is used for future's unusual not confirmed expences

Is This Answer Correct ?

8 Yes

3 No

what is the differace between depreciation and provision..

Answer / sania

Depreciation is the value of asset decreased and provision
is maintaining a sum of amount to meet future unexpected
financial needs such as providing provision for doubt full
debts provision for taxation provision for depreciation.

Is This Answer Correct ?

6 Yes

3 No

what is the differace between depreciation and provision..

Answer / mary

Depreciation is used for assets value decrease and provision
is used for future's unusual not confirmed expences

Is This Answer Correct ?

4 Yes

4 No

what is the differace between depreciation and provision..

Answer / guest

depreciation is arranged for the the assets buy provision's
are arranged for the purpose of out standings.