Notes on lesson on Reserve and Provision | kullabs.com

Reserve and Provision

Notes

Types of Reserve

Revenue reserve are created out of reserve profit. They are available to distribute as dividend to shareholders. This note has information about various types of reserves.

Reserve and Provision

Reserve is a part of profit set aside to meet the future contingencies. It is created for meeting the unexpected future liabilities and losses. A provision is the amount set aside by debiting the profit and loss account for the specific purpose. This note has information about reserve and provisions.