Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


what are the similarities between provision and reserve?

Answers were Sorted based on User's Feedback



what are the similarities between provision and reserve?..

Answer / bhagya

Provision
we are creating provision for expenses which are going to
occur in future we do not konw the exact future expenses

Reserve
out of profit some protion of allotted as a reserve balance
are distribute as a dividend to shareholders
this reserve use for future business investment

Similarities between provision & reserve we are allocating
some amount ie., unknown amount (Unknown exp., or unknown
purpose of reserve creating (fe.,)we do not know the
investment amount

Is This Answer Correct ?    5 Yes 3 No

what are the similarities between provision and reserve?..

Answer / arun kumar

provision is the amount kept a side for future known
liabilities
reserve is an amount kept a side to face future risk occur
in the business

Is This Answer Correct ?    4 Yes 3 No

what are the similarities between provision and reserve?..

Answer / h.r. sreepada bhagi

As mentioned by Bhagya, accounting for expenses for a
period, the amount is not known exactly but is reasonable
estimated based on the past & showing would be liabilities
in the Balance Sheet. These provisions need to be reversed
in the subsequent accounting period and the expense shall be
accounted for exact amount, when the supporting bill is
received or the expense is ascertained with proper back-up
documents. provisioning is necessary in 'Accrual Concept' of
Accounting to match expenses with revenues in any accounting
period.
Reserve - As mentioned above is profit set aside for
specific or general Purpose. Besides this there can be
Depreciation Reserve, which represents accumulated
depreciation on Fixed Assets (This's an exception).
Provisions are part of liabilities & Reserves form part of
'Net Worth'
Provisions are shown as Provisions for Expenses under
'Current Liabilities & Provisions' & Reserves can be shown
as 'General Reserve', Dividend Equalisation Reserve',
Investment Allowance Reserve', 'Depreciation Reserve', etc,
in the 'Balance Sheet'.

Is This Answer Correct ?    2 Yes 2 No

what are the similarities between provision and reserve?..

Answer / k.thirumamagal

as devi said provision is charge against profit and reserves
are appropriation of profit. provision is minimum amount
which is set aside by the company to meet the known
liabilities and reserve is set aside to meet the unknown
liabilities.

Is This Answer Correct ?    0 Yes 0 No

what are the similarities between provision and reserve?..

Answer / devi

simply provision means which will create against the profit
and reserve means appripriation of profit

Is This Answer Correct ?    2 Yes 3 No

what are the similarities between provision and reserve?..

Answer / mohammed rizwan

provision means the debts which are not covered during the
accounting period.
reserve means the profit which are kept aside for future
purpose is known as reserve.

Is This Answer Correct ?    2 Yes 4 No

Post New Answer



More Accounting General Interview Questions

What is field status variant in SAP FI Module?

1 Answers   IBM,


Any body would tell me how to takeover withholding tax at the time of go live in sap fico

0 Answers   FIS,


Dear sir/madam, Want to know entry for closing of sundry creditors account on the end of the year when its accounts shows debit balance, Payment made excess. E.g Invoice rcvd : 100000.00 from XYZ company payment Made: 105000.00 Please suggest best entry for the same

0 Answers  


How can do it TDS in accounts?

0 Answers  


What is the definition(meaning) for the Final accounts adjustment 'Uninsured goods lost fire'?

0 Answers  






If vendor is deducting TDS amt while paying, how to pass entry inbooks. Will it be TDS recoverable/TDS payable a/c. kindly clarify

3 Answers  


a buyer,purchases a for rs100, b for rs80, c for rs60 and mixed in ratio of 3:4:5 and sells @ 50% profit what wil be d price?

12 Answers   TCS,


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?

1 Answers  


who is the supreme commander of Indian Armed Forces?

2 Answers  


What is entry of Dishonored cheque issued to supplier

0 Answers  


Given the following entries from a TRIAL balance, what entries would fall where in a Balance Sheet & an Income Statement? Accounts receivables Merchandized inventory stores supplies office supplies prepaid insurance accumulated Dep accounts payable sales salaries advertising expense Miscellaneous expense Office salaries expense rent expense Depreciation expense Insurance expense Bad debts expense Allowance for doubtful debts Supplies expense

1 Answers  


What is the entry to be made when any service tax is paid for any vehicle hired or any service used when tax is included in that bill

1 Answers  






Categories