A and V enter into a joint venture to sell a consignment of
biscuits sharing profits and
losses equally. A provides biscuits from stock Rs 10000. He
pays expenses amounting
to Rs 1000. V incurs further expenses on carriage Rs 1000.
He receives cash for sales
Rs 15000. He also takes over goods to the value of Rs 2000.
The profit on joint venture
What is the difference between reserve and provision.