Difference between reserves for bad debts & provision for
bad debts.
- 6 Answers
- 39835 Views
- HSBC, NRN Business solution, Siemens, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / pramod
company will kept some amount as reserve for bad debts in advance.if any debt becomes bad then it will realise from reserve..that is known as reserves for bad debts.
Any debit is in a position of becoming insolvent or unpaid,those debt is called provision for bad debts
| Is This Answer Correct ? | 55 Yes | 8 No |
Answer / irfan khan
PROVISION IS KEPT WITH THE NAME OF A PARTICULAR LIABILITY
AND IT IS CHARGET TO PROFIT AND LOSS ACCOUNT WHERE AS
RESERVE IS KEPT FROM PROFIT AND LOSS APPROPRATION ACCOUNT
FOR GENERAL PURPOSE TO UTILIZE OR ORGANIZATION EXPANSION
| Is This Answer Correct ? | 14 Yes | 5 No |
Answer / navaneeth
Reserve is an appropriation on profit and created only if
company earns profit and shown in profit and loss
appropriation account.
Provision charged against profit and created either earn
profit or incur loss and shown in profit and loss account.
| Is This Answer Correct ? | 13 Yes | 5 No |
Answer / vatsal vora
Provision for bad debt is an appropriation of profit to combat bad debt against a particular doubtful debtor/s while reserve for doubtful debt is an appropriation of profit for general business bad debts contingent to occur in future.
| Is This Answer Correct ? | 5 Yes | 8 No |
Answer / raju gupta
PROVISION IS KEPT TO MEET THE ASSUMED LIABILITY IN FUTURE
IN ALL COMPANY.
RESERVE FOR BAD DEBT. WE KEPT THIS RESERVE TO OVERCOME FROM
THE LOSS WHICH WILL OCCUR DUE TO BAD DEBT...
| Is This Answer Correct ? | 6 Yes | 10 No |
What are control ledgers?
How will service tax & excise be charged?
Why Reserves and Surplus are shown on the liabilities side of the balance sheet.? justify your answer.
4 Answers Infosys, Muthoot Group,
Machinary worth Rs 2000 and sold to Rs 1200. Bought new one Rs 4000 and carige inwards Rs 5 How many amount trafer to Capital a/c?
Suppose you buy a one-year government bond that has a maturity value of Rs.1000. The market interest rate is 8 per cent. (a) How much will you pay for the bond? (b) If you purchase the bond for Rs.904.98, what interest rate will you earn from this investment?
Explain me what is assets minus liabilities?
WHAT IS TAX ? WHY SHOULD PAY TAX?WHAT IS THE NEED FOR PAYING TAX?
what is a register when referring to accounting or bookkeeping?
What will be the general entry for purchase return? What will be the general entry for sales return?
4- What do you mean by journals and journalizing?
Hi Guys. Does anyone know any practising cost accountant in hyderabad? Pls help me. I would like to gain some practical experinence. Salary not an issue. Pls help me guys.
Do you know what qualities and skills make an account manager successful?
Audit 
