Answer Posted / keerthi d&

Provisision is nothing but,keeping aside out of profits to
bear the uncertain losses in the future.. so provisions
are made to set off the losses of a company or a business
concern which will occur in the future period..
different types of provisions are:-
1.provision for depriciation (on plant & machinary, land &
buildings, accessories, etc..)
2.provision for bad debts (on debtors,bills recievables,
etc..)
3.provision for uncertain losses(fire, theft. spoilage
etc..)

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