Define Reserve & Provision?

Question Posted / lokesh khintolia

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Define Reserve & Provision?..

Answer / vellingiri

Reserve:
Reserve is created out of the profit of a company for the
purpose of distribution of divident and redemption of
shares/debentures etc.

Provision;
Provision is created for a particular purpose for
example income tax provision. So that particular provision
can be utilized for that particular purpose.

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Define Reserve & Provision?..

Answer / adit

reserve is a part of divedent which company kept for itself for future growth and expansion.

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Define Reserve & Provision?..

Answer / ashok

Reserve
Reserve is Created to Meet Future Unexpected Exp. or
Liability

provision
provison is Created to meet Expected expenses (but unknown
figure)of Accounting Period in Future.

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6 No

Define Reserve & Provision?..

Answer / vijayakumar

Spelling of dividend not divident
In American accounting they use only the term provision or allowance In India now people use both in the same sence

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