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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32 Yes

3 No

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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14 Yes

5 No

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.

Is This Answer Correct ?

13 Yes

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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