PROVISION AND RESERVE I ACCOUNTS I DIFFERENCE I TYPES OF RESERVES

Provision is a charge agaisnt profit whereas reserve is appropriation of profit.

RESERVES are of two types-
1. Open Reserve and
2. Secret Reserve

Open Reserves are of two type-
A. Revenue Reserve and
B. Capital Reserve

Revenue Rserves can be-
a. General Reserve
b. Special Reserve and
c. Reserve Fund

ACCOUNTING PRINCIPLES, CONCEPTS AND CONVENTIONS 👇
ACCOUNTANCY l ACCOUNTING PRINCIPLES ,...