Register now or log in to join your professional community.
Reserve is created against the charge of the profit and loss appropriation account.
Reserves are created to meet an unknown liability, or to strengthen the financial position of the company or for equalization of dividends. A reserve is created only when there is profit in the business.
Provision is created against the charge of profit and loss account.
It is created to meet a known liability or a specific contingency, e.g.. provision for bad and doubtful debts, or provision for depreciation etc and we can created irrespective of whether there is profit or loss in the business.
RESERVE : created to face emergency situations ( not for certain asset or liability )
provision: created against uncertain in the value of known liability or asset
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.
