What is the difference between provision and payable
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Answer / anuruddh sharma
PROVISION; Provision is made in the books for those
liabilities which may probably be occur in the future and
provision is made for the amount on the basis of
estimation.
PAYABLE: Payable is a liability which has been occurred but
not paid. There is no need to estimate the amount.
| Is This Answer Correct ? | 63 Yes | 4 No |
Answer / rajesh
provision : provision entry made during end of the
financial year. for eg: we have to pay salary for
march .and we are paying 4th april'08. below entry should
be created
Dr salary a/c
cr Salary payable a/c
Payable : payable is our liability for every month. it may
TDS payable,VAT payable,& etc..
| Is This Answer Correct ? | 56 Yes | 24 No |
Answer / rashmi
Provisions: It is the estimated amount which is set aside
or retained by a company for meeting the future liability
whose amount cannot be determind with substantial accuracy.
provision are madefor liability which may occur in future.
Examples:Provision for depriciation,Prov For Doubtful
debt,Prov for taxation etc.
Payables:It is the actual amount of liability which has
occured in an accounting year but not paidoff.Its amount is
not estimated it is actual.ITs a company obligation to pay
off a short-term debt to its creditors. The accounts
payable entry is found on a balance sheet under the heading
current liabilities.
| Is This Answer Correct ? | 37 Yes | 5 No |
Answer / prasad deshmukh
provision made on probable basis. We can confirm the amount
of payable but not for provision.
eg. amount of rent payable is fixed but amount of provision
for telephone exp. is not fixed
| Is This Answer Correct ? | 23 Yes | 7 No |
Answer / y p nevatia
In provision, either the receipient or the amt. involved or
both are not certain & even TDS is not attracted on
provision made.
In case of payable or outstanding liability, both the
amount & receiptient are certain but bill for the same may
or may not have been received. TDS, if applicable, shall be
deducted for creating any liability or payable.
| Is This Answer Correct ? | 8 Yes | 2 No |
Answer / manoj
• In a broader sense, provision is nothing, but liability,
and considered an obligation of a business to be met in
near future implying cash outflow.
• However, on closer inspection, provision appear to be a
special type of liability.
• This is because of certainty that is normally associated
with liability, and which is lacking in the case of
provision.
• This means that we are accepting provision and liability
to be similar, but not saying this clearly, but accepting
them as two points on a continuum.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / ajay atolia
Payables are the fixed amount for which some services had
been taken and amount of that services is to be paid.
while creation of provisions are depends on happening or
non happening of an event.
eg. Outstanding of electricity exp -Payables
Provision for bad debts -Provision
| Is This Answer Correct ? | 5 Yes | 2 No |
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