what is difference between provision and reserve ?

Answers were Sorted based on User's Feedback



what is difference between provision and reserve ?..

Answer / rishita

Provision is for a specific future expenses (may or may not
incur) and reserves are the accumulation of profits that
are not distributed

Is This Answer Correct ?    3 Yes 0 No

what is difference between provision and reserve ?..

Answer / vijay ram.s

provision is prepaired beforth net profit calculaton, but
resurves are prepair after calculation of net profit
provisions are not depend on profit,if firm contain losses
also we cen make provisions,but reserves are not like that
when firm get profit then only we cen provide fund for
reserves

Is This Answer Correct ?    2 Yes 0 No

what is difference between provision and reserve ?..

Answer / raghu.aps eveing v b.com

Provision refer s to both thing one is Provisions for
Expenses
and second one Prv for Income

when entry passed for expsenss prov
Expenses account dr
To Expenses payable accounts Cr

for Income

Income receivable Dr
Income Account Cr

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting AllOther Interview Questions

after directing tally 9 to calculate interest as per 30 day option basis on a loan account.........,it still calculates interest as per calender month when checked on to display>statements of accounts>interest payable in tally 9 ...where is the error?? how to correct the function.

0 Answers  


EXPAND______________RAC

1 Answers  


What is the due date for filing monthly & annual sales tax returns in karanataka

0 Answers  


what is meant by debit and credit

22 Answers   DELL, i Tech, IBM, Wipro,


Which Exchange determine Foreign Exchange/Currency Rate?

0 Answers  






what is zero base budget?

3 Answers  


how many types of financial teribuanal? what is that?

0 Answers   Grand Bay,


list out the accounting concepts and explain the accural concept

10 Answers   Capital IQ, College School Exams Tests, SNE,


What is periodicity concept

2 Answers  


what is content of purchase order?

1 Answers  


basic rules in accounting

10 Answers   CA, ITC Infotech, KDCC,


Liabilities: 2006 2007 Assets 2006 2007 Trade Creditiors 100 40 Cash atBank 100 65 Bills Payable 50 60 Account/R 105 120 Outstanding Expenses 25 20 B/R 130 140 Bonds Payable 220 140 Inventory 110 40 Accumulated Depreciation: Machinery 120 160 -on Machinery 30 35 Building 300 310 -On Building 75 85 Land 60 130 Reserves 100 115 Patents 55 60 Retained Earning 130 170 share Capital 250 360 Profit from operation after providing Rs.10,000as depreciation on building and Rs.10,000 on machinery and Rs.5,000 as amortization on patents for the year 'April 06- March07' was Rs.35,000. Other revenues for the year were Rs.40,000. An old machine with original cost of Rs.15,000 was sold at a loss of rs.5,000. Prepare Fund Flow Statment and Cash Flow Statment for the year ending March 31 2007 based on the information given above.

0 Answers  


Categories