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what is the difference between provision for bad debts and
reserve for bad debts?
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Answer Posted / chandu
provision for bad debts means the amount kept a side for future known bad debts.
this amount is debited to profit and loss a/c,
where as reserve for bad debts means the amount kept a side for future unknown bad debts.
reserve for debts the amount debited to profit and loss aprapriation a/c.
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