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
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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