Free help with homework

Why join Brainly?

  • ask questions about your assignment
  • get answers with explanations
  • find similar questions


The Brainliest Answer!
Maybe this can help:
Reserve is created against the charge of the profit and loss appropriation account. & Provision is created against the charge of the profit and loss account.
1 5 1
Reserve :it is an appropriation of profit... created to meet unknown liability.. it increases amount of working capital.. it is shown on liability side of balance sheet.....

provision :it is a charge on profit.... created to meet known liability... it is for meeting an anticipated loss or liability.... it is not available for distribution of divident....
1 5 1
The Brain
  • The Brain
  • Helper
Not sure about the answer?
Learn more with Brainly!
Having trouble with your homework?
Get free help!
  • 80% of questions are answered in under 10 minutes
  • Answers come with explanations, so that you can learn
  • Answer quality is ensured by our experts