Basic accounts query

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 

I do agree with Nitin and Amit.