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what is provisions ?
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Answer / ravindra
its calculate on year end those expense are period end after 31st mar like electricity exp. telephone exp.etc. e.g. like period 25.03.2015-24.04.15 in that case we have to take provision for book exp. 25.03.15 to 31.03.15.
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Answer / anilraj t
Provision Means expected expense pertaining to partiicular period which is booked in that period and paid immediately sub seeding period.
Ex: Every month end creating provisions for salaries and paid later in subsequent month
What ever payables coming in Accounting just remeber it is a provision made.
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