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Provisions are charge against profit and Reserves are appropriation of profit.
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∙ 11y ago
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Difference between provision for bad debt and reserve for bad debt?
Provisions and Reserves are the amount setaside out of profits. When the amount is set aside for a particular purpose it is called a provison. Examples for this is Provision for Baddebts and provision for Depreciation and Provision for Discounts on Debtors. when the amount is setaside for particular purpose is called a provision whereas Reserve is the amount setaside out of profit but not for particular purpose. In most cases provision is incorrectly described as Reserve. One cannot create Reserve for baddebts.
What is difference between fund and reserve?
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Difference between provision for reserve fund and reserve fund?
Provisions are those where the liability existence is certain, but the amount of liability cannot be determined with substantial accuracy. In case of reserves, the liability is not known. but some amount of profits are kept aside for meeting the contingencies that might become actual liabilities.
What do you mean by reserve and Provision?
Reserve -The funds that a company sets aside to meet future unknown losses. Provision- the funds that a company set aside to meet future known losses
What is the difference between reserves and surplus?
A reserve is a planned amount, a surplus is unplanned.
Difference between provision for bad debt and reserve for bad debt?
Provisions and Reserves are the amount setaside out of profits. When the amount is set aside for a particular purpose it is called a provison. Examples for this is Provision for Baddebts and provision for Depreciation and Provision for Discounts on Debtors. when the amount is setaside for particular purpose is called a provision whereas Reserve is the amount setaside out of profit but not for particular purpose. In most cases provision is incorrectly described as Reserve. One cannot create Reserve for baddebts.
What is the difference between Reserves and Provision?
Reserve is a an amount set aside from the profit when it is calculated. On the other hand provision is an amount charged against profit and loss in order to assist in calculating the accurate profit.
The difference between primary and secondary reserves?
what are the diffrence between primary reserve and secondary reserve?
What is reserve and provision?
A provision is a charge against the profits of a Company (or a set-aside) while a reserve is a transfer of profits. You could also call reserve a book entry, or a below the line adjustment. Provision is made irrespective of profits, for instance, a provision against Bad and Doubtful debts. A reserve is created out of, and only if there exists, profits.
What is difference between fund and reserve?
ok ok
What is the difference between an accrued and a provision?
i must say accrued and provision is two different things,accrued is something paid to you but you can spend it,concerning provision is not the same.
What is the difference between Loan Loss Reserves and Loan Loss Provisions?
loan loss reserve: loans are going to default so banks use part of provision to book reserve. loan loss provisions: percertage of gross loans that all banks have to keep in their balance sheet as regulated
Difference between provision for reserve fund and reserve fund?
Provisions are those where the liability existence is certain, but the amount of liability cannot be determined with substantial accuracy. In case of reserves, the liability is not known. but some amount of profits are kept aside for meeting the contingencies that might become actual liabilities.
What is the difference between delegates reserve and concurrent powers?
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What is difference between provision liability and continget liability?
A provision is when it's grater than 50% chance of happening where as a contingent is less than that. You show a provision on the accounts but not the contingent.
What do you mean by reserve and Provision?
Reserve -The funds that a company sets aside to meet future unknown losses. Provision- the funds that a company set aside to meet future known losses
What is the difference between to book and to reserve?
differentiate between reference materials and reserved books
