Answer / naveen kumar

provision:provision usually means any amount written off or
retained by the way of providing depreciation, renewals or
diminutions in the value of assets or retained by way of
providing for any known liability of which the amount can
not be determined with substantial accuracy.

reserves: that portion of current earnings set aside to
take care of possible future losses or for other specified
purpose.
difference:provision is charge against profits while
reserves is an appropriate of profits.
creation of reserves increase proprietor's fund while
creation of provisions decrease his funds in the business.

Answer / krishna kumar

Provisions means some expenses incured at the time closing
the account but payment not yet paid /the amount to be held
ith us that belongs to others

Answer / sandeep

Provision will be made for known liability or loss (its not the actual a/m of loss or liability)


Reserve will be made for unknown liability which is upcoming.
(not actual assumed portion)

Answer / kannan

Provision is the allocation of amount to be made for expenses incurred in future, it should be write-off once amount made.

Reserve is the portion of earing to meet the eventual loss

Can u please give me a proper example of how genral entries of depreciation are recorded like if depreciation expense is ONE HUNDRED and acc.dep is two hundred how we will record that?

1 Answers  

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HI I AM WORKING IN A INTERIOR DESIGNING COMPANY.WE ACTUALLY GET PROJECTS FROM CLIENTS & WE SUBCONTRACT THE WORK WE USUALLY SUBCONTRACTS THE SUPPLY OF LABOUR & SUPPLY OF MATEIALS TO SUBCONTRACTORS.WE DONT HAVE LABOURS OF OUR OWN & ALSO PRODUCTION OF MATERIALS.HOW CAN I TREAT THIS IN TALLY IS THERE ANY OPTION AVAILABLE IN TALLY FOR SUBCONTRACTING OR SHALL I ENTER THE NAME OF SUBCONTRACTORS AS SUNDRY CREDITORS AS WE DO USUALLY IN TALLY.PLEASE DO LET ME KNOW ABOUT THIS 0554125475 IS MY NUMBER

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treatment of reserve fund in trail balance whether debit or credit.

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