Answer / anuruddh sharma

PROVISION; Provision is made in the books for those
liabilities which may probably be occur in the future and
provision is made for the amount on the basis of
estimation.

PAYABLE: Payable is a liability which has been occurred but
not paid. There is no need to estimate the amount.

Answer / rajesh

provision : provision entry made during end of the
financial year. for eg: we have to pay salary for
march .and we are paying 4th april'08. below entry should
be created
Dr salary a/c
cr Salary payable a/c

Payable : payable is our liability for every month. it may
TDS payable,VAT payable,& etc..

Answer / rashmi

Provisions: It is the estimated amount which is set aside
or retained by a company for meeting the future liability
whose amount cannot be determind with substantial accuracy.
provision are madefor liability which may occur in future.
Examples:Provision for depriciation,Prov For Doubtful
debt,Prov for taxation etc.

Payables:It is the actual amount of liability which has
occured in an accounting year but not paidoff.Its amount is
not estimated it is actual.ITs a company obligation to pay
off a short-term debt to its creditors. The accounts
payable entry is found on a balance sheet under the heading
current liabilities.

Answer / prasad deshmukh

provision made on probable basis. We can confirm the amount
of payable but not for provision.
eg. amount of rent payable is fixed but amount of provision
for telephone exp. is not fixed

Answer / y p nevatia

In provision, either the receipient or the amt. involved or
both are not certain & even TDS is not attracted on
provision made.

In case of payable or outstanding liability, both the
amount & receiptient are certain but bill for the same may
or may not have been received. TDS, if applicable, shall be
deducted for creating any liability or payable.

Answer / manoj

• In a broader sense, provision is nothing, but liability,
and considered an obligation of a business to be met in
near future implying cash outflow.
• However, on closer inspection, provision appear to be a
special type of liability.
• This is because of certainty that is normally associated
with liability, and which is lacking in the case of
provision.
• This means that we are accepting provision and liability
to be similar, but not saying this clearly, but accepting
them as two points on a continuum.

Answer / ajay atolia

Payables are the fixed amount for which some services had
been taken and amount of that services is to be paid.

while creation of provisions are depends on happening or
non happening of an event.

eg. Outstanding of electricity exp -Payables
Provision for bad debts -Provision

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Alpha Co. issued to the public for subscription 40000 shares of rs 10 each at discount of 10%payable as rs. 2 each on application, allotment and first call and rs.3 on the final call. Applications were received for 60000 shares and allotment was made pro-rata to 80% of applicants. R to whom 2000 shares were allotted paid only the application money, and S who had applied for 3000 shares,paid the entire call money due along with the allotment. pass journal entries to record the above transaction.

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