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why we make prov. for depriciation account ?
Replies (3)
As we know that dep. is an expense.So we keep a part of profit as provision so that we can meet the expense later.
But, if there is no balance in prov. and ques ask to make prov. for dep. account then ?
Yeah u can then make provision out of profit by passing a journal entry:
Profit and loss A/c Dr.
To provision for dep. A/c
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