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Answer Posted / h.r. sreepada bhagi
In respect of some expenses for a financial period, bills
would not have come, actual calculations could not be done
(For some reason), payments not made and for any reason any
expense can not be accounted during that period, provision
needs to be created at the end of that financial period with
reasonable amount to prepare the Profit & Loss A/c for that
period as correct (Not accurate) as possible & show
relatively correct position in the period-end Balance Sheet.
It's according to accrual concept & matching (Revenue &
Cost) concept.
| Is This Answer Correct ? | 3 Yes | 1 No |
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analyses of Cost control
