provision Vs expense

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2010 What is the difference between Income tax expense and provision for income tax and likewise what is the difference between bad debts and provision for bad debts? kindly explain the difference and also the DETAILED ACCOUNTING PROCEDURE to be followed in accounting the same.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 June 2010 Expenses are already incurred and bills are received and liablity created, but the provisons already work has completed and expenses incurred but the bills are not received so provision need to be created

Income tax expenses already paid and provison is based on the estimate we will provided for the period

Bas debts already we knew the amount will not come and written off bu provision is we will create except the for the future

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2010 I need further detailed clarification on the Concept and also I need

how accounting is done when provision is made for bad debts and income tax. Kindly explain in detail.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 June 2010
Provision - Expenses incurred but the bills are not recived

Bad debts- Management approved the concerened debt not recovereable

Income tax - actual payment of income tax

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