Provision vs outstanding
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 September 2011
Whats the difference between?
Hari Beldona
(Expert)
04 September 2011
Provision:It may be income or expense but can not be determined accurately in many circumstances, normally we encounter this at the time of finalization of accounts for a particular period for example provision for income tax, provision for telephone expenses, provision for auditors remuneration, provision for bad and doubtful debts etc usually it is estimated meticulously.
Normally provision for income will not be provided because based on conservative convention means estimate expenses or losses not profits or gains.
Outstanding: It may be income or expenditure which is earned/incurred but not received/paid during the accounting period, both are to be taken into account at the end of accounting period.
Provisions/outstanding expenses will appear under current liability in Balance Sheet, whereas outstanding income will appear under current assets in Balance Sheet.
Normally provision for income will not be provided because based on conservative convention means estimate expenses or losses not profits or gains.
Outstanding: It may be income or expenditure which is earned/incurred but not received/paid during the accounting period, both are to be taken into account at the end of accounting period.
Provisions/outstanding expenses will appear under current liability in Balance Sheet, whereas outstanding income will appear under current assets in Balance Sheet.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
