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Question -

Give four examples each of provision and reserves.



Answer -

Four examples of provision are given below.

  • Provision for bad and doubtful debts
  • Provision for discount on debtors
  • Provision for depreciation
  • Provision for taxation

Four examples of reserve are given below.

  • General reserve
  • Capital reserve
  • Dividend equalisation reserve
  • Debenture redemption reserve

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