Interested to Buy Any Domain ? << Click Here >> for more details...
what is the distinction between provisions and reserves
- 2 Answers
- 4533 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / bindu
Provision is created to meet known liabilities. So that it
will be debited to P&L A/c where as credit will be hitted
to Assets side of the Balance Sheet (reduced from specific
asset for which it has been created.) Provision needs to be
created in case of losses also and this provision is not
used for distribution as dividends among share holders.
Reserve is created for un known liabilities. and it will be
debited to P&L appropriation account and credited to
liability account in balance sheet.Reserve can be created
in case of profits only.And this amount can be used for
distribution as dividend (Unless specific reserves).
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / h.r. sampath kumar
a) Provision is an amount which is written off or
retained by way of providing for depreciation, renewals
or dimunition in the value of assets or retained by way of
providing for any known liability, the amount of which
cannot be ascertained with substantial accuracy.
b) Reserve shall not include any amount written off or
retained by way of providing for depreciation, renewals
or dimunition in the value of assets or retained by way of
providing for any known liability, the amount of which
cannot be ascertained with substantial accuracy. ( a
negative definition)
| Is This Answer Correct ? | 0 Yes | 0 No |
Expand ------DGCA
what is shares buy back And Stock plit.
What is means by operating profit & which item containing
Total numbers of companies listed on stock Exchange?
when will be prepared the company accounts
What are the things are not Included in Annual Reports?
what is meant by cash purchase?
What is Cash Management System? What is advantages of using CMS Facility?
HOW MUCH LATEST ACCOUNTING STANDARDS , TDS RATE , INCOME TAX RATE, EXCISE , VAT , SERVICE TAX & FBT RATES? (PLS. ARRANGE TO SEND THE RATES FOR ABOVE IN CATAGORY & LIMIT WISE)
WHAT IS THE MEANING OF CREDIT WORTHINESS?
7 Answers Capital IQ, Finance,
Agreement of Trial Balance is not a conclusive proof of absence of Errors. Will you support me
If in a PO, the freight condition is mentioned as Air freight and the material is actually received by Road, how does the system check before making the necessary accounting entries?
Audit 
