What is the Provision? What is the Entry for Provision?

Showing Answers 1 - 26 of 26 Answers

jagadish

  • Oct 13th, 2007
 

Provision means liabilities It means payable account  it's an very usefull for controlling payable accounts like telephone charges, ESIC accounts, EPF accounts,
 
EPF payable accounts Dr
to EPF accounts

ESIC payable accounts Dr
to ESIC account

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Masroor Ahmad

  • Jun 4th, 2014
 

provission a/c ( Dr.)
Debtor a/c ( Cr.)

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Vijay

  • Jun 8th, 2014
 

Provision Entry Dr. Expenses A/c (P&L)
Cr. Provision For Exps A/c (B/S)

W.R.T the expenditure u met
Dr. Provision for Exps A/c
Cr. Cash/Bank A/c

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harish

  • Jun 14th, 2014
 

Example-
We have not got the expense bill so, at the time of accounting
Provision Expense a/c dr
s.creditor a/c cr

at the the time of payment

s.creditor a/c dr
bank cr

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Leonard

  • Jun 20th, 2014
 

Provision is a present obligation whether legal or constructive from the past event that is probable for an outflow of future economic events and it is reliably measurable.

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Anand

  • Aug 25th, 2014
 

Expenses A/C Dr

To Provision A/C

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SHAIK RAIS AHMED

  • Feb 15th, 2015
 

expenses A/c - Dr
To Provision for expenses A/C - Cr
Provision for expenses A/C - Dr
Cash / Bank A/C - Cr

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Bhavik Dudhrejiya

  • Mar 3rd, 2015
 

Provision is setting aside certain sum of money for liability or loss which can not be definitely ascertain in future.

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NADEEM SHEHZAD

  • Mar 5th, 2015
 

Provision for Expenses Code will be debit and Bank or Cash will be credit

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Syed

  • Apr 8th, 2015
 

To books the periodical expenses without invoice is called the provision .

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favas pakkada

  • Apr 30th, 2015
 

An amount from profits that has been put aside in a companys accounts to cover a future liability is called a provision.
Entry for recording actual bad debt which did not record in books of business
1. Bad debts account Dr. xxxxx
To Sundry Debtors Account xxxxxx
Entry for transferring bad debts to provision for bad debts Account
2. Provision for bad debts account Dr. xxxxxx
To Bad Debts account xxxxx
Transfer of provision for bad debts account to profit and loss account
3. Profit and loss account Dr. xxxxxx
To Provision for bad debts account xxxxx

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neel

  • Oct 26th, 2015
 

Expense A/C Dr
Provision for expense A/C Cr

Example: Bad Debts
Bad Debt A/C Dr
to provision for Bad Debt

If write off
Provision for Bad Debt A/C Dr
to customer A/C

If recovered Bad Debts
1@ customer A/C Dr
to provision for Bad Debt A/C
2@ cash A/C Dr
to customer A/C

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surya vishwakarma

  • Oct 26th, 2015
 

When you will pass entry of liability on expense
Expense a/c Dr
To Provision a/c

When you will make payment of provision (liability)
Provision a/c Dr
To cash a/c

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Goodluck

  • Dec 18th, 2015
 

This is not the best way as it is only useful when dealing with a supplier with a constant billing rate. If the supplier billing is not constant You will end up reversing the entry. The best way is to capture this transaction is to Dr. Expense a/c & Cr. Provision Liability account. After receiving the invoice then you can reverse by Dr: Provision Liability account & Cr: Supplier account. By doing this you can be able to maneuver with the difference between actual an provision taken

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Vijay

  • Jan 13th, 2016
 

We want to make provisional account

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saritha

  • Feb 29th, 2016
 

journal entry is wrong, EPF A/c Dr
To EPF payable A/c

ESIC A/c Dr
To ESIC payable A/c

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Irene

  • Apr 21st, 2016
 

How to create leave provisions for month end and how to deal with it when you pay leave and how to treat the remaing balance at year end.

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Ranganath Naik

  • Jun 23rd, 2016
 

Provision applies to all transactions say income and expenses. The accounting standard - Revenue Recognition is followed here to disclose the profits in realistic way. Provision is not charge but it is only bringing the expenditures or incomes into the books of accounts.

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Raju

  • Jul 18th, 2016
 

Depreciation a/c ---- Dr
Provision for Depreciation a/c
Provision for Depreciation a/c -- Dr
Tangible fixed assets a/c

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Aakash

  • Jul 18th, 2016
 

Provision means its accounting. When will do some expenses occurred during last month of FY and its confirm to pay next year.
Like..Salary, Professional fees, Vat Payable...

Eg. Salary-ABC ltd is company & Mr. XYZ is works as employee. ABC LTD will pay to salary every next month after his work. But on March company pay to his salary in the month of April (next month).
So, Mr. XYZ for March month of Salary as Provisional shows should get next month of April (Confirm)...

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Hafeesul Fahad

  • Nov 26th, 2016
 

Provision is reserve for known loss will happens in future. If reserve is for unknown loss then it become general reserve
Bad debt A/c dr
To provision for debt.( bad debt is an indirect expen so it will debit to p&l A/c and provision will shown as liability in balance sheet.
When the bad debt happens in future , treatment will
Provision A/c dr
To debtor A/c ( no treatment required in p&l A/c bcoz treatment is already made before ie when provision is made. In balance sheet deduct the amount from debtor in asset side.
If bad debt is lower than the provision( provision 1000 and bad debt happens 500)
No change in entry.
Provision A/c dr 500
To debtor. 500.
Here treament is like this in balance sheet 500 will deduct from debtor and left ( 1000-500) will show provision in liability side of balance sheet
.

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S Raja Gopalan

  • Mar 31st, 2017
 

What is the entry to be made for Provision for Salary

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AFSAL NAHA

  • Jul 23rd, 2017
 

When creating Provision Salary JV Is
Salary a/c Dr
Provision for Salary
When we allotting Salary
Provision for Salary A/c Dr
Salary a/c
When we transfer to P/L A/C
P/L A/C DR
SALARY A/C

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AFSALNAHA.K

  • Jul 23rd, 2017
 

When we make provision for Salary, Entry is
1) Salary A/C (Indirect Expense)
Provision for Salary (Current Liability)

2) When we charge Salary to Provision.
Provision for Salary A/C Dr
To Salary

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Subrata

  • Feb 2nd, 2018
 

Provision for depreciation as like an expenses for the fixed assets

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Ceaser

  • Feb 25th, 2018
 

Provision is a liability account and not an expense account

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SALIMALI

  • Apr 12th, 2018
 

When Create Provision
Expenses A/C Dr
To Provision for Expenses Cr
When We book the Invoice for the Expenses
Provision for Expenses A/c Dr
To Accounts Payable A/C Cr
When we make the payment
Accounts Payable A/c Dr
To Cash/Bank/PDC Payables

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