09 June 2014
accounting entry passed to provide for a forseeable future liability based on current events is called a provision entry.
For eg as you pay salaries on 20th of each month. then at 31 March, you need to create provision for 11 days of salary which shall be paid on 20th April.
17 June 2014
Provisional entries are made when any income or expenses is assessed on the basis of activities done, but the same cant be debited or credited to certain a/c.
CAclubindia
