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Difference between reserves for bad debts & provision for
bad debts.

Answers were Sorted based on User's Feedback



Difference between reserves for bad debts & provision for bad debts...

Answer / pramod

company will kept some amount as reserve for bad debts in advance.if any debt becomes bad then it will realise from reserve..that is known as reserves for bad debts.

Any debit is in a position of becoming insolvent or unpaid,those debt is called provision for bad debts

Is This Answer Correct ?    55 Yes 7 No

Difference between reserves for bad debts & provision for bad debts...

Answer / irfan khan

PROVISION IS KEPT WITH THE NAME OF A PARTICULAR LIABILITY
AND IT IS CHARGET TO PROFIT AND LOSS ACCOUNT WHERE AS
RESERVE IS KEPT FROM PROFIT AND LOSS APPROPRATION ACCOUNT
FOR GENERAL PURPOSE TO UTILIZE OR ORGANIZATION EXPANSION

Is This Answer Correct ?    14 Yes 5 No

Difference between reserves for bad debts & provision for bad debts...

Answer / navaneeth

Reserve is an appropriation on profit and created only if
company earns profit and shown in profit and loss
appropriation account.

Provision charged against profit and created either earn
profit or incur loss and shown in profit and loss account.

Is This Answer Correct ?    13 Yes 5 No

Difference between reserves for bad debts & provision for bad debts...

Answer / raunak

Yes

Is This Answer Correct ?    0 Yes 3 No

Difference between reserves for bad debts & provision for bad debts...

Answer / raju gupta

PROVISION IS KEPT TO MEET THE ASSUMED LIABILITY IN FUTURE
IN ALL COMPANY.
RESERVE FOR BAD DEBT. WE KEPT THIS RESERVE TO OVERCOME FROM
THE LOSS WHICH WILL OCCUR DUE TO BAD DEBT...

Is This Answer Correct ?    6 Yes 10 No

Difference between reserves for bad debts & provision for bad debts...

Answer / vatsal vora

Provision for bad debt is an appropriation of profit to combat bad debt against a particular doubtful debtor/s while reserve for doubtful debt is an appropriation of profit for general business bad debts contingent to occur in future.

Is This Answer Correct ?    4 Yes 8 No

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