Answer Posted / ami
provision is made for such type of accounts in which we
have doubt to be loss and company prepares iteself for
suffering this loss by which company doesnt have to face
financial music.where as reserve is made for the investors
who invest thier money in the company incase a year company
suffers loss that time in the market company has to save
its image despite of loss company has to pay dividend to
thier investors bywhich thier trust on the company can be
maintained and this amount is paid made reserve.
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