What is difference between Accrual and Provision,provide me with an example.

What is difference between Accrual and Provision,provide me
with an example.

Question Posted / amarnath

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What is difference between Accrual and Provision,provide me with an example...

Accrual means Income that is to be earn to current
financial year but received AFTER Financial year it always
concern with income whereas Provision is always concern with
liablities and its means is bill will be received AFTER
FINANCIAL Yr but Exp will be for Current financial year.

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What is difference between Accrual and Provision,provide me with an example...

Answer / ravinder

accrual is created for incomes, where as provision is created for baddebts.

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