SlideShare a Scribd company logo
Provisions in 
Accounting and 
Treatment 
Thereof. 
Presented by, 
Amit Sekhar
What is Provision? 
An amount set aside from profits in the 
accounts of an enterprise for a known liability, 
though the specific amount of the liability may 
not be known, or for the diminution of the 
value of an asset.
Types of Provisions 
 Provision For Bad Dept. 
 Provision For Depreciation. 
 Provision For Tax. 
 Provision For Discount on Debtors. 
 Provision For Repair and Renewals.
Objectives/Need for provisions. 
To Meet Anticipated Losses And Liabilities 
Provisions are created for meeting anticipated losses and 
liabilities such as provision for doubtful debts, provision for 
discount on debtors and provision for taxation. 
To Meet Known Losses And Liabilities 
Provisions are created for meeting known losses and 
liabilities such as provision for repair and renewals. 
To Present Correct Financial Statements 
In order to present correct financial statements and to report 
true profit and financial position, the business must maintain 
provision for known liabilities and losses.
Treatment 
In the Books of Abhishek 
Dr. Profit & Loss Account Cr. 
Particulars Amt. (₹) Particulars Amt.(₹) 
To salaries 10,000 By Gross profit 95,000 
To rent 5,000 By interest 5,000 
To prov. For bad debt 2,500 
To Depreciation 5,000 
To Provision for tax 2,500 
To Net profit 75,000 
1,00,000 1,00,000
BALANCE SHEET (As on 31/3/14) 
LIBILITIES Amt (₹) ASSETS Amt(₹) 
Capital 1,25,000 Plant & Machinery 105,000 
Add: Net Profit 75,000 2,00,000 Less: Depreciation 5,000 1,00,000 
Loan 50,000 Furniture & Fixture 50,000 
Creditor 10,000 Debtor(Nishant) 5,000 
Bills Payable 5,000 Less: Prov.for doubtful debt 2,500 2,500 
Out standing expenses 2,500 Cash 50,000 
Bank 65,000 
2,67,500 2,67,500

More Related Content

What's hot

Operating a SMSF
Operating a SMSFOperating a SMSF
Operating a SMSF
Michael Kirby
 
Superannuation 5 operating a smsf
Superannuation 5   operating a smsfSuperannuation 5   operating a smsf
Superannuation 5 operating a smsf
Michael Kirby
 
6. accounting for management lecture 15 final account
6. accounting for management lecture 15 final account6. accounting for management lecture 15 final account
6. accounting for management lecture 15 final account
Nony Gupta
 
Statement of cash flows
Statement of cash flowsStatement of cash flows
Statement of cash flows
Jashim Uddin
 
Adjustment in final accounts
Adjustment in final accountsAdjustment in final accounts
Adjustment in final accounts
Shubhrat Sharma
 
Ind AS 102 | Share Based Payments
Ind AS 102 | Share Based PaymentsInd AS 102 | Share Based Payments
Ind AS 102 | Share Based Payments
AnkitKumar2474
 
14.2 Balance-day adjustments
14.2 Balance-day adjustments14.2 Balance-day adjustments
14.2 Balance-day adjustments
VCE Accounting - Michael Allison
 
Accrual Accounting and Balance Day Adjustments
Accrual Accounting and Balance Day AdjustmentsAccrual Accounting and Balance Day Adjustments
Accrual Accounting and Balance Day Adjustments
College
 
Divisible Profit
Divisible ProfitDivisible Profit
Divisible Profit
Augustin Bangalore
 
Retirement of a partner
Retirement of a partnerRetirement of a partner
Retirement of a partner
Shubham Ahirwar
 
As 15
As 15As 15
Amortisation of financial instrument
Amortisation of financial instrumentAmortisation of financial instrument
Amortisation of financial instrument
Chien Fu Kong
 
Accumulated profit and losses
Accumulated profit and lossesAccumulated profit and losses
Accumulated profit and losses
Mamta Narula
 
Statement of cash flows
Statement of cash flowsStatement of cash flows
Statement of cash flows
ctalecturer
 
Accounting Cycle- Accruals and Defferls- Adjusting entries
Accounting Cycle- Accruals and Defferls- Adjusting entriesAccounting Cycle- Accruals and Defferls- Adjusting entries
Accounting Cycle- Accruals and Defferls- Adjusting entries
FaHaD .H. NooR
 
Money vocab
Money vocabMoney vocab
Money vocab
cmartin_06
 
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLESPROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
National Management Olympiad
 
Set off and carried forward loss
Set off and carried forward lossSet off and carried forward loss
Set off and carried forward loss
Praveen PC
 
Accounting Equation
Accounting EquationAccounting Equation
Accounting Equation
Jashim Uddin
 
CA Varun Sethi - IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
CA Varun Sethi -  IndAS 102 - IFRS 2 - Share based payments - Accounting for ...CA Varun Sethi -  IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
CA Varun Sethi - IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
Varun Sethi
 

What's hot (20)

Operating a SMSF
Operating a SMSFOperating a SMSF
Operating a SMSF
 
Superannuation 5 operating a smsf
Superannuation 5   operating a smsfSuperannuation 5   operating a smsf
Superannuation 5 operating a smsf
 
6. accounting for management lecture 15 final account
6. accounting for management lecture 15 final account6. accounting for management lecture 15 final account
6. accounting for management lecture 15 final account
 
Statement of cash flows
Statement of cash flowsStatement of cash flows
Statement of cash flows
 
Adjustment in final accounts
Adjustment in final accountsAdjustment in final accounts
Adjustment in final accounts
 
Ind AS 102 | Share Based Payments
Ind AS 102 | Share Based PaymentsInd AS 102 | Share Based Payments
Ind AS 102 | Share Based Payments
 
14.2 Balance-day adjustments
14.2 Balance-day adjustments14.2 Balance-day adjustments
14.2 Balance-day adjustments
 
Accrual Accounting and Balance Day Adjustments
Accrual Accounting and Balance Day AdjustmentsAccrual Accounting and Balance Day Adjustments
Accrual Accounting and Balance Day Adjustments
 
Divisible Profit
Divisible ProfitDivisible Profit
Divisible Profit
 
Retirement of a partner
Retirement of a partnerRetirement of a partner
Retirement of a partner
 
As 15
As 15As 15
As 15
 
Amortisation of financial instrument
Amortisation of financial instrumentAmortisation of financial instrument
Amortisation of financial instrument
 
Accumulated profit and losses
Accumulated profit and lossesAccumulated profit and losses
Accumulated profit and losses
 
Statement of cash flows
Statement of cash flowsStatement of cash flows
Statement of cash flows
 
Accounting Cycle- Accruals and Defferls- Adjusting entries
Accounting Cycle- Accruals and Defferls- Adjusting entriesAccounting Cycle- Accruals and Defferls- Adjusting entries
Accounting Cycle- Accruals and Defferls- Adjusting entries
 
Money vocab
Money vocabMoney vocab
Money vocab
 
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLESPROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
PROPOSAL FOR FUND RAISING FOR CHARGING STATIONS FOR ELECTRIC VEHICLES
 
Set off and carried forward loss
Set off and carried forward lossSet off and carried forward loss
Set off and carried forward loss
 
Accounting Equation
Accounting EquationAccounting Equation
Accounting Equation
 
CA Varun Sethi - IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
CA Varun Sethi -  IndAS 102 - IFRS 2 - Share based payments - Accounting for ...CA Varun Sethi -  IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
CA Varun Sethi - IndAS 102 - IFRS 2 - Share based payments - Accounting for ...
 

Viewers also liked

Innovative Marketing Of “Jassi Jaise Koi Nahi”
Innovative Marketing Of  “Jassi Jaise Koi Nahi”Innovative Marketing Of  “Jassi Jaise Koi Nahi”
Innovative Marketing Of “Jassi Jaise Koi Nahi”
Amit Sekhar
 
Holistic marketing
Holistic marketingHolistic marketing
Holistic marketing
Amit Sekhar
 
Global business issues 2
Global business issues 2Global business issues 2
Global business issues 2
fazygull
 
Popp1405 politics in business
Popp1405  politics in businessPopp1405  politics in business
Popp1405 politics in business
fazygull
 
Renaissance Hotels Marketing
Renaissance Hotels MarketingRenaissance Hotels Marketing
Renaissance Hotels Marketing
Amit Sekhar
 
See you at the top -zig ziglar
See you at the top -zig ziglarSee you at the top -zig ziglar
See you at the top -zig ziglar
Amit Sekhar
 
Self motivation
Self motivationSelf motivation
Self motivation
Amit Sekhar
 
Marketing techniqes of game of thrones
Marketing techniqes of game of thronesMarketing techniqes of game of thrones
Marketing techniqes of game of thrones
Amit Sekhar
 
Digital marketing of coca cola
Digital marketing of coca colaDigital marketing of coca cola
Digital marketing of coca cola
Amit Sekhar
 
Amit sekhar tips to increase engagement
Amit sekhar tips to increase engagementAmit sekhar tips to increase engagement
Amit sekhar tips to increase engagement
Amit Sekhar
 
Integrated Marketing Communication
Integrated Marketing CommunicationIntegrated Marketing Communication
Integrated Marketing Communication
Amit Sekhar
 
MANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEMMANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEM
Amit Sekhar
 
Change is permanent
Change is permanentChange is permanent
Change is permanent
Amit Sekhar
 
just to download
just to downloadjust to download
just to download
timslideshare1990
 
Global business issues
Global business issuesGlobal business issues
Global business issues
fazygull
 
1000 word reflective essay corp1518
1000 word reflective essay corp15181000 word reflective essay corp1518
1000 word reflective essay corp1518
fazygull
 
Alphabetical list of companies
Alphabetical list of companiesAlphabetical list of companies
Alphabetical list of companies
Jakir Hossain
 

Viewers also liked (17)

Innovative Marketing Of “Jassi Jaise Koi Nahi”
Innovative Marketing Of  “Jassi Jaise Koi Nahi”Innovative Marketing Of  “Jassi Jaise Koi Nahi”
Innovative Marketing Of “Jassi Jaise Koi Nahi”
 
Holistic marketing
Holistic marketingHolistic marketing
Holistic marketing
 
Global business issues 2
Global business issues 2Global business issues 2
Global business issues 2
 
Popp1405 politics in business
Popp1405  politics in businessPopp1405  politics in business
Popp1405 politics in business
 
Renaissance Hotels Marketing
Renaissance Hotels MarketingRenaissance Hotels Marketing
Renaissance Hotels Marketing
 
See you at the top -zig ziglar
See you at the top -zig ziglarSee you at the top -zig ziglar
See you at the top -zig ziglar
 
Self motivation
Self motivationSelf motivation
Self motivation
 
Marketing techniqes of game of thrones
Marketing techniqes of game of thronesMarketing techniqes of game of thrones
Marketing techniqes of game of thrones
 
Digital marketing of coca cola
Digital marketing of coca colaDigital marketing of coca cola
Digital marketing of coca cola
 
Amit sekhar tips to increase engagement
Amit sekhar tips to increase engagementAmit sekhar tips to increase engagement
Amit sekhar tips to increase engagement
 
Integrated Marketing Communication
Integrated Marketing CommunicationIntegrated Marketing Communication
Integrated Marketing Communication
 
MANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEMMANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEM
 
Change is permanent
Change is permanentChange is permanent
Change is permanent
 
just to download
just to downloadjust to download
just to download
 
Global business issues
Global business issuesGlobal business issues
Global business issues
 
1000 word reflective essay corp1518
1000 word reflective essay corp15181000 word reflective essay corp1518
1000 word reflective essay corp1518
 
Alphabetical list of companies
Alphabetical list of companiesAlphabetical list of companies
Alphabetical list of companies
 

Similar to Provisions in Accounting and Treatment Thereof.

Topic5 compthe acccycle_robiah
Topic5 compthe acccycle_robiahTopic5 compthe acccycle_robiah
Topic5 compthe acccycle_robiah
kuZocoi
 
Demystifying of Accounting Equation
Demystifying of Accounting EquationDemystifying of Accounting Equation
Demystifying of Accounting Equation
Kanik Vijay
 
Accountancy3
Accountancy3Accountancy3
Accountancy3
hjayapal1968
 
allyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptxallyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptx
JigneshTrivedi33
 
Chapter Two LIC.ppt
Chapter Two LIC.pptChapter Two LIC.ppt
Chapter Two LIC.ppt
HaleemaAbdella
 
Adjusting the account
Adjusting the accountAdjusting the account
Adjusting the account
ava & araf co.
 
Chap 7 Adjusting entries .ppt
Chap 7 Adjusting entries .pptChap 7 Adjusting entries .ppt
Chap 7 Adjusting entries .ppt
Mohamoud9
 
Financial statement
Financial statementFinancial statement
Financial statement
AKSHAY KASAMBE
 
FINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERSFINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERS
Pedzis
 
Adjustments of Final Accounts
Adjustments of Final AccountsAdjustments of Final Accounts
Adjustments of Final Accounts
NEETHU S JAYAN
 
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdfFinancial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
hitishaagrawal
 
Financial accounting
Financial accountingFinancial accounting
Financial accounting
Muhammad Asad Tahir
 
Cash flow statements
Cash flow statementsCash flow statements
Cash flow statements
BSTAI
 
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
A N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T SA N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T S
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
Dr. Trilok Kumar Jain
 
Accounting For Entrepreneurs
Accounting For EntrepreneursAccounting For Entrepreneurs
Accounting For Entrepreneurs
Dr. Trilok Kumar Jain
 
14 Statement Of Cash Flows
14   Statement Of Cash Flows14   Statement Of Cash Flows
14 Statement Of Cash Flows
Yasir Hussain Turi
 
CFO Insight For Business Owners: How to Utilize Financial Statements
CFO Insight For Business Owners: How to Utilize Financial StatementsCFO Insight For Business Owners: How to Utilize Financial Statements
CFO Insight For Business Owners: How to Utilize Financial Statements
Chase R. Morrison
 
Basics of Financial Management for Non Finance Executives - Part 1
Basics of Financial Management for Non Finance Executives - Part 1Basics of Financial Management for Non Finance Executives - Part 1
Basics of Financial Management for Non Finance Executives - Part 1
SChakrabarti
 
account adjustment , its types and time issue
account adjustment , its types and time issueaccount adjustment , its types and time issue
account adjustment , its types and time issue
AbdulGhaffarGhori
 
Preparation Final statement ppt (1) 125-1.pptx
Preparation Final statement ppt (1) 125-1.pptxPreparation Final statement ppt (1) 125-1.pptx
Preparation Final statement ppt (1) 125-1.pptx
ShaheenAkthar
 

Similar to Provisions in Accounting and Treatment Thereof. (20)

Topic5 compthe acccycle_robiah
Topic5 compthe acccycle_robiahTopic5 compthe acccycle_robiah
Topic5 compthe acccycle_robiah
 
Demystifying of Accounting Equation
Demystifying of Accounting EquationDemystifying of Accounting Equation
Demystifying of Accounting Equation
 
Accountancy3
Accountancy3Accountancy3
Accountancy3
 
allyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptxallyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptx
 
Chapter Two LIC.ppt
Chapter Two LIC.pptChapter Two LIC.ppt
Chapter Two LIC.ppt
 
Adjusting the account
Adjusting the accountAdjusting the account
Adjusting the account
 
Chap 7 Adjusting entries .ppt
Chap 7 Adjusting entries .pptChap 7 Adjusting entries .ppt
Chap 7 Adjusting entries .ppt
 
Financial statement
Financial statementFinancial statement
Financial statement
 
FINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERSFINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERS
 
Adjustments of Final Accounts
Adjustments of Final AccountsAdjustments of Final Accounts
Adjustments of Final Accounts
 
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdfFinancial-Stmt-Analysis-Bootcamp-Slides.pdf
Financial-Stmt-Analysis-Bootcamp-Slides.pdf
 
Financial accounting
Financial accountingFinancial accounting
Financial accounting
 
Cash flow statements
Cash flow statementsCash flow statements
Cash flow statements
 
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
A N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T SA N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T S
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
 
Accounting For Entrepreneurs
Accounting For EntrepreneursAccounting For Entrepreneurs
Accounting For Entrepreneurs
 
14 Statement Of Cash Flows
14   Statement Of Cash Flows14   Statement Of Cash Flows
14 Statement Of Cash Flows
 
CFO Insight For Business Owners: How to Utilize Financial Statements
CFO Insight For Business Owners: How to Utilize Financial StatementsCFO Insight For Business Owners: How to Utilize Financial Statements
CFO Insight For Business Owners: How to Utilize Financial Statements
 
Basics of Financial Management for Non Finance Executives - Part 1
Basics of Financial Management for Non Finance Executives - Part 1Basics of Financial Management for Non Finance Executives - Part 1
Basics of Financial Management for Non Finance Executives - Part 1
 
account adjustment , its types and time issue
account adjustment , its types and time issueaccount adjustment , its types and time issue
account adjustment , its types and time issue
 
Preparation Final statement ppt (1) 125-1.pptx
Preparation Final statement ppt (1) 125-1.pptxPreparation Final statement ppt (1) 125-1.pptx
Preparation Final statement ppt (1) 125-1.pptx
 

Recently uploaded

Pillar-Based Marketing - Ryan Brock, DemandJump
Pillar-Based Marketing - Ryan Brock, DemandJumpPillar-Based Marketing - Ryan Brock, DemandJump
Podcast, The New Marketing Currency - Ozeal Debastos
Podcast, The New Marketing Currency - Ozeal DebastosPodcast, The New Marketing Currency - Ozeal Debastos
Podcast, The New Marketing Currency - Ozeal Debastos
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Breaking Silos To Break Bank: Shattering The Divide Between Search And Social
Breaking Silos To Break Bank: Shattering The Divide Between Search And SocialBreaking Silos To Break Bank: Shattering The Divide Between Search And Social
Breaking Silos To Break Bank: Shattering The Divide Between Search And Social
Navah Hopkins
 
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Gokila digital marketing| consultant| Coimbatore
Gokila digital marketing| consultant| CoimbatoreGokila digital marketing| consultant| Coimbatore
Gokila digital marketing| consultant| Coimbatore
dmgokila
 
Email Marketing Master Class - Chris Ferris
Email Marketing Master Class - Chris FerrisEmail Marketing Master Class - Chris Ferris
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Growth Marketing in 2024 - Randy Rayess, Outgrow
Growth Marketing in 2024 - Randy Rayess,  OutgrowGrowth Marketing in 2024 - Randy Rayess,  Outgrow
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Top digital marketing institutein noida
Top digital marketing institutein noidaTop digital marketing institutein noida
Top digital marketing institutein noida
aditisingh6607
 
Yes, It's Your Fault Book Launch Webinar
Yes, It's Your Fault Book Launch WebinarYes, It's Your Fault Book Launch Webinar
Yes, It's Your Fault Book Launch Webinar
Demandbase
 
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptxFrom Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
Boston SEO Services
 
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
Demandbase
 
AI Driven Emotional Recognition in Digital Ads - Tarun Gupta
AI Driven Emotional Recognition in Digital Ads - Tarun GuptaAI Driven Emotional Recognition in Digital Ads - Tarun Gupta
AI Driven Emotional Recognition in Digital Ads - Tarun Gupta
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim KirbyGlobal Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Digital Strategy Master Class - Andrew Rupert
Digital Strategy Master Class - Andrew RupertDigital Strategy Master Class - Andrew Rupert
Mastering The Best Restaurant Advertising Campaigns Detailed Guide
Mastering The Best Restaurant Advertising Campaigns Detailed GuideMastering The Best Restaurant Advertising Campaigns Detailed Guide
Mastering The Best Restaurant Advertising Campaigns Detailed Guide
Kopa Global Technologies
 

Recently uploaded (20)

Pillar-Based Marketing - Ryan Brock, DemandJump
Pillar-Based Marketing - Ryan Brock, DemandJumpPillar-Based Marketing - Ryan Brock, DemandJump
Pillar-Based Marketing - Ryan Brock, DemandJump
 
Podcast, The New Marketing Currency - Ozeal Debastos
Podcast, The New Marketing Currency - Ozeal DebastosPodcast, The New Marketing Currency - Ozeal Debastos
Podcast, The New Marketing Currency - Ozeal Debastos
 
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
Data-Driven Personalization - Build a Competitive Advantage by Knowing Your C...
 
Breaking Silos To Break Bank: Shattering The Divide Between Search And Social
Breaking Silos To Break Bank: Shattering The Divide Between Search And SocialBreaking Silos To Break Bank: Shattering The Divide Between Search And Social
Breaking Silos To Break Bank: Shattering The Divide Between Search And Social
 
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge...
 
Gokila digital marketing| consultant| Coimbatore
Gokila digital marketing| consultant| CoimbatoreGokila digital marketing| consultant| Coimbatore
Gokila digital marketing| consultant| Coimbatore
 
Email Marketing Master Class - Chris Ferris
Email Marketing Master Class - Chris FerrisEmail Marketing Master Class - Chris Ferris
Email Marketing Master Class - Chris Ferris
 
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
Smart Tools, Smarter Business -15 AI Tools to Optimize Your Workflows from Id...
 
Growth Marketing in 2024 - Randy Rayess, Outgrow
Growth Marketing in 2024 - Randy Rayess,  OutgrowGrowth Marketing in 2024 - Randy Rayess,  Outgrow
Growth Marketing in 2024 - Randy Rayess, Outgrow
 
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
How to Use a Free Book Funnel to Drive Highly Qualified Buyers Into Your Busi...
 
Top digital marketing institutein noida
Top digital marketing institutein noidaTop digital marketing institutein noida
Top digital marketing institutein noida
 
Yes, It's Your Fault Book Launch Webinar
Yes, It's Your Fault Book Launch WebinarYes, It's Your Fault Book Launch Webinar
Yes, It's Your Fault Book Launch Webinar
 
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptxFrom Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptx
 
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...
 
Amazing and On Point - Ramon Ray, USA TODAY
Amazing and On Point - Ramon Ray, USA TODAYAmazing and On Point - Ramon Ray, USA TODAY
Amazing and On Point - Ramon Ray, USA TODAY
 
AI Driven Emotional Recognition in Digital Ads - Tarun Gupta
AI Driven Emotional Recognition in Digital Ads - Tarun GuptaAI Driven Emotional Recognition in Digital Ads - Tarun Gupta
AI Driven Emotional Recognition in Digital Ads - Tarun Gupta
 
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim KirbyGlobal Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
 
Digital Strategy Master Class - Andrew Rupert
Digital Strategy Master Class - Andrew RupertDigital Strategy Master Class - Andrew Rupert
Digital Strategy Master Class - Andrew Rupert
 
Mastering The Best Restaurant Advertising Campaigns Detailed Guide
Mastering The Best Restaurant Advertising Campaigns Detailed GuideMastering The Best Restaurant Advertising Campaigns Detailed Guide
Mastering The Best Restaurant Advertising Campaigns Detailed Guide
 

Provisions in Accounting and Treatment Thereof.

  • 1. Provisions in Accounting and Treatment Thereof. Presented by, Amit Sekhar
  • 2. What is Provision? An amount set aside from profits in the accounts of an enterprise for a known liability, though the specific amount of the liability may not be known, or for the diminution of the value of an asset.
  • 3. Types of Provisions  Provision For Bad Dept.  Provision For Depreciation.  Provision For Tax.  Provision For Discount on Debtors.  Provision For Repair and Renewals.
  • 4. Objectives/Need for provisions. To Meet Anticipated Losses And Liabilities Provisions are created for meeting anticipated losses and liabilities such as provision for doubtful debts, provision for discount on debtors and provision for taxation. To Meet Known Losses And Liabilities Provisions are created for meeting known losses and liabilities such as provision for repair and renewals. To Present Correct Financial Statements In order to present correct financial statements and to report true profit and financial position, the business must maintain provision for known liabilities and losses.
  • 5. Treatment In the Books of Abhishek Dr. Profit & Loss Account Cr. Particulars Amt. (₹) Particulars Amt.(₹) To salaries 10,000 By Gross profit 95,000 To rent 5,000 By interest 5,000 To prov. For bad debt 2,500 To Depreciation 5,000 To Provision for tax 2,500 To Net profit 75,000 1,00,000 1,00,000
  • 6. BALANCE SHEET (As on 31/3/14) LIBILITIES Amt (₹) ASSETS Amt(₹) Capital 1,25,000 Plant & Machinery 105,000 Add: Net Profit 75,000 2,00,000 Less: Depreciation 5,000 1,00,000 Loan 50,000 Furniture & Fixture 50,000 Creditor 10,000 Debtor(Nishant) 5,000 Bills Payable 5,000 Less: Prov.for doubtful debt 2,500 2,500 Out standing expenses 2,500 Cash 50,000 Bank 65,000 2,67,500 2,67,500