Interested to Buy Any Domain ? << Click Here >> for more details...
WHAT ARE THE DIFFERENCE BETWEEN RESERVES AND PROVISIONS?
- 7 Answers
- 10249 Views
- HP, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / guest
Reserves is something that the company has with
itself....whereas provisions are expenses tat company
expects and provides for the future....
| Is This Answer Correct ? | 14 Yes | 3 No |
Answer / praveen kumar
Reserves are those amount which is reserved by the company
for future unexpected losses.Where as the provision are
those amount which is reserved by the company for a
specific expenses in future.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / k. phalguna rao
Reserves: every year transfer some amount from net profits
of the company for future needs to purchase plan &
machinary
for Ex: Machine value 10 lacs and it's working capacity 10
years it means every year it's working capacity will be
reduced after 10 years this machine value become 0 so we
have to purchase new machine for purchase the machine we
have to spend huge money so we cannot effort from working
capital
New machinary will be purchased with the funds of Reserves
and surplus
Provisions: Generally provisions are made for two things
first one is for Bad debts and second one is for year end
adjustments
| Is This Answer Correct ? | 4 Yes | 0 No |
Reserves are the balance which is reserved by the co for the
further planning of the business and surplus profit is taken
under Reserve and surplus account.
But Provisions are thos balances which are prepared for
unexpected losses in future like Bad debts, bad debts
written off...
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / manjari
Reserve means some amount allovated from profit for an unexpected expenses. Like compensation to employee.
Provisions means out standing expenses payable by company. Ex rent payable.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / rajesh
reserves are created from surpluss profits to showinng
financial position of the company,purchase of assets and
redemption of share capital etc
provisions are created for meet the expindutre which will
incured in futere
| Is This Answer Correct ? | 1 Yes | 2 No |
what is the capital goods?
hi.this krishan .i m slect in axis bank for executive. when i sposse to join
If income and expense both are equal then what it depicts
I am a student of ICWAI (Intermediate). I looking for some information about Rayalty and Hire Purchase.
what is Prime Brokerage?
Machinery Rate is 12000/- and residual value is 2000/- and life span is 10yrs.Calculate the dep in Straight line method.
i want the steps involved in the customization for the process order. my situations is if i take the process order for x qty then stores people can issue only x qty not less or not more. how to do this. pls help me
expand R D P
the following figures given to you: 2008-09 Sales Rs.100000 Loss 10000. 2009-10 Sales Rs.250000 Profit 20000 Calculate: P/V Ratio, BEP, Sales to make a profit of Rs.40000, Margin of safety at at profit of Rs.2000
What is the basic difference between pledge, hypothication and mortgage????
Why did you choose banking as your profession?
25 Answers Axis Bank, HDFC, HNB, ICICI, Private, State Bank Of India SBI, Yes Bank,
I KNOW THAT INSURANCE CHARGES ON PURCHASE OF VEHILE (LIGHT/HEAVY VEHICLES)HAS BEEN CAPITALISED OR NOT.
Audit 
