Doubt about provision

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suppose if a company creates a provision for repair of machinery of rs 15000

and actual repairing cost incurred is rs 10000

then wat will be the treatment for remaing amount 5000 left in provision A/c 

then will you treat it as profit or something else?

please reply 

Replies (1)

The same shud be written-back t P&L as excess provision was being made.  Else the balance would remain as it is and shud be utilized against any subsequent reapirs being made.


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