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Meaning of a line

Others 225 views 4 replies
On 31st March, 2019 the net profit (before taking into account the provisions of deed) was ₹2,40,000.
I am confused that what the meaning is
Replies (4)

I think it would mean that provision for some act has not been taken into account while arriving at net profit. In other words, net profit would be impacted if such provision is considered.

Sry maam but can u plz elaborate

As I understand, probably a provision for something needs to be made which is not yet made.

For example, let's assume the net profit (before making provision for salary) is Rs.10 lacs and provision to be made for salary is Rs.1 lac. In this case, once provision for salary is made, the net profit would be Rs.9 lacs.

Ok thankyou maam


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