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Why provisions are made & what will be the Journal entry
for different types of provisions.
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Answer Posted / ammu
provision are made because they are payable in future not
or next accounting year.
JOURNAL ENTRY
company pay gratuity and each year an entry is pass for the
same which is called Provision for gratuity
so entry will be
Gratuity A/c dr
Provision for Gratuity a/c
this is a provision entry ( above )
Profit & loss a/c DR
Gratuity A/c
| Is This Answer Correct ? | 66 Yes | 27 No |
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