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Provision for exp

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(Querist)
28 September 2011 Sir,
provision for exp means kya hota hai plz explain with example and accounting entry.
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
28 September 2011 Provision for expenses means the expenses accounted in the period which actually occurred or incurred. suppose the telephone expenses for the month of Sep-11 accounted in the month of sep-11 itself is called provision ( which you may not got the bill, but accounted based on projection and estimation )
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