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

Answer Posted / 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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

In the case of stock transfer from one branch to another branch any reverse credit is applicable.

1563


What is recording damage inventory in books of account?

602


All Interview related Questions pertaining to General Ledger,Finance & Accounts.

2299


What is the TDS rate in Maharastra, Tamil Nadu, Karnakata,Odisha & West Bengal. What is about Profession Tax.

1403


Differentiate between consignor and consignee?

668






give me examples of the accounting reports you have prepared

718


informance about performance is disclosed by

1790


What is the master account?

602


What is the definition of accounting?

608


What is Normal Loss? and What is the reason for Debiting such Loss in P&L account and also Crediting in Trading Account? and how the Loss should be accounted?

1106


What are control ledgers? What are the purposes of maintaining it?

626


what is core accounting?

1839


What are the items that are to be debited in accounting and what are the items that are to be credited in accounting?

829


Tell me what are the activities that includes in cash flow statement?

943


What is the Corporate Tax, Minimum Alternate Tax, Professional Tax, Business Tax Describe Me

1818