difference between provision and reserves

Asked by sntshtrk530 | 6th Nov, 2017, 08:12: PM

Expert Answer:

Provision and reserve can be differentiated based on
  • Provision is maintained to meet specific liability where as reserve is maintained for specific purpose 
  • Provision is a charge against the profit whereas reserve is an appropriation of profit

Answered by Tharageswari S | 7th Nov, 2017, 09:32: AM

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