ketavarapu

 Profile Answers by ketavarapu 

• Dec 17th, 2007

 

Provisions                                                            Reserves
1. It is a charge aganist the profit.                   1. It is an appropriation of Profit. 
2. It is shown in P&L A/C                                   2. It is shown in P&L Appropriation A/C.
3. It is a definite liability.                                   3.It is kept for future liabilities.
4.Ex.Provision for Audit fee.                              4.Ex. Reserve for bad debts.    

rajesh.GOPI

 Profile Answers by rajesh.GOPI 

• Dec 25th, 2007

 

PROVISIONS: These are made aganist charge. Provision are made if there is profit or not for company.ex: Bad debts, income tax.

RESERVES These are made on profits. Generally every has kept minium 10% as reserves.

Mir Raashid

• Jun 5th, 2013

 

Provisions: provisions are made for meeting known liabilities..e.g.,provision for doubtful debts ,provision for depreciation e.t.c..
1. It is charged against profits .
2. provisions are compulsory ,whether there are profits or loss.
3. it cannot be used for distributing dividends.