Distinguish between Reserves and Provisions

1 answer

Auditguru Staff March 11, 2018

Hello Saurabh 🙂 what is your doubt ? Please ask specific doubt, we cannot teach whole concepts through this platform.

Reserves = Accumulated profits, can be allocated for specific purpose like building reserve / expansion reserve etc or they can be kept in general reserve free for future use.
Provision = They are made on estimation basis for paying liability.


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