Interested to Buy Any Domain ? << Click Here >> for more details...
Difference between reserves for bad debts & provision for
bad debts.
- 6 Answers
- 41941 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 is SEC?
What is accounting chart of accounts?
My company sent this party goods 62750 this goods is loss sundorbhan paribahan. how to create voucher
What is the goodwill, how it will be calculeted.can Goodwill posted on laibiltes side Balance sheet.
How bank reconciliation statement is prepared
Why have you applied to our firm?
Why Reserves and Surplus are shown on the liabilities side of the balance sheet.? justify your answer.
4 Answers Infosys, Muthoot Group,
Explain dual aspect term in accounting?
"money left on the table," what it means???
how did prepare the trail balance & profit & loss A/c and balance sheet
What is Fund Flow and how to prepare that?
Do you know marginal cost?
Audit 
