Basic accounts query

1912 views 11 replies

what  is the difference between outstanding expenses and provision for expenses?

Replies (11)

Expenses which are which becomes due or payble are called outstanding expenses.. we knows the amount of axpenses so so paybles...

whereas provison for expenses are provisonal in nature.. i.e. we dnt know the exact amount of expenses.. we just makes an estimate or budget...

agree with NITIN 

may i know the journal entries to boh 

Expense A/c Dr

         To Expense payable

With the amount it is due and known with certainity but not paid

For Provision:

Expense A/c Dr

          To Provision for expense

With the amount which is pertaining to period of reporting but the amount is not certain..As in case of electricicty exp u dnt have the bill as on 31.3.2011 but an entry should be passed based on expectation.

hmmm

what is the correct entrY for provisions:

expenses a/c   Dr 

          to       outstanding expenses a/c Cr

or 

p & l       a/c      Dr 

          to      provision for expenses a/c  Cr

agreed with amit....

i think appropriation against profit is for reserves, is it applicable to provisions ?

Chaitanya

 

Provision comes above the line so it is not an appropriation 

Originally posted by : Nitin Garg

Expenses which are which becomes due or payble are called outstanding expenses.. we knows the amount of axpenses so so paybles...

whereas provison for expenses are provisonal in nature.. i.e. we dnt know the exact amount of expenses.. we just makes an estimate or budget...

I do agree with Nitin and Amit.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details