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Define Reserve & Provision?

Answer Posted / vellingiri

Reserve:
Reserve is created out of the profit of a company for the
purpose of distribution of divident and redemption of
shares/debentures etc.

Provision;
Provision is created for a particular purpose for
example income tax provision. So that particular provision
can be utilized for that particular purpose.

Is This Answer Correct ?    32 Yes 3 No



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