difference between provisions and reserves

Answer Posted / nagaveni

Provision: As per accounting standard 29 it is charge on
profit and it is a known liability some amount kept aside
for the specific work
Reserve: it is appropriation of profit and some amount kept
aside to meet the future obligations

Is This Answer Correct ?    2 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

why we multiply no. of purchasing year with average profit

1570


we are a trading company providing devices and some times after sales service. when any defect came we just replace the hardware from another defective device and getting the payment from the customer. how can we account that? is there any tax implications for this?

2733


Explain what makes a successful account manager?

623


how to pass provision salary full and settlement(inclusive Bonus,Gratutity etc )please show me entry

3687


Explain me where a cash discount should be recorded in journal entry?

3488






Tell me what a deferred asset is and give an example?

622


What is bad debt expense?

642


How much statistics knowledge is necessary or required in accounting?

904


what is retention? how caculate on asset

1759


What is debit and credit note?

692


How to pass workscontract sale invoice which includes WCT & VAT.

1798


what is the performa of bank reconcilation ? i want to need it and also i want to know about tds entry for various sources such as rent,contractor, commission, etc. and how we make the tds return, please tell me its very urgent?

1710


what is "goodwill" reserve and surplus and reserve with example

1596


If the company acquires equipment prior to incorporation what are the accounting entries?

1190


How Can We Differ Horizental & Vertical Balace Sheet? Explain.

1417