what is a difference b/w provision and reserve
Answers were Sorted based on User's Feedback
Answer / venkatesh
provision and reserves are maintained under the profit and
loss account only.the main differance bet ween the
provision and reserves are
provision:
Provision is created out of profits for the perticular
purpose of exependiture only.
ex:provision for income tax and provision for depreciation
etc...
Reserves:
Reserves are maintained for the purpose of future
obligations.Those reserves are also different types.
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / sandheep
Provision is a present obligation of a company from past
event. It is created for a known expense and its treatment
is charging in P/L. Reserve is created for an unknown
expense and it is an appropriation of profit.
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / aneesh nair
Reserves are appropriations of profit namely when profits have been ascertained after deducting all expenses which includes provision and others. Reserves are residual earnings after all expenses and taxation which belongs to the owners namely the shareholders.
There are essentially two(2) types of Reserves:
Capital Reserves
Revenue Reserves
Provisions are those where the liability existance is certain, but the amount of liability cannot be determined with substantial accuracy.
Is This Answer Correct ? | 1 Yes | 0 No |
What is Capital Budgeting?
Expand---------ABCDEF
Who is the maker of the promissory note
How do you manage the sales account in tally
Why should we prepare profit
30 Answers Accenture, Maharaja Whiteline,
WHAT IS GOODWIL ?
What the journal entry pass for appreceation Fixes asset Dr Cash/Bank/Supplier Cr Is i m Wright
Suresh agreed to adjust Ramesh due amount of Rs 15000- from his credit balance
What is outsider equity and time interest period ratio?
tell me about a time you had to deal with a conflict between a licensed and unlicensed personnel and how handled the situation?
What is meant by Cost Accounting? How it is different from Financial Accounting?
what is the defination of unit costing and process costing?