Difference between reserves for bad debts & provision for
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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|
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|
Answer / navaneeth
Reserve is an appropriation on profit and created only if
company earns profit and shown in profit and loss
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|
Answer / raunak
|Is This Answer Correct ?||0 Yes||3 No|
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|
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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