Archive about 'Provision and Reserve'

Provision For Sales Discount /Discount Allowed

In my other articles, we have dealt with the provision for doubtful debts and provision for stock obsolescence.
 
Now, in this article, we shall look at a provision called:

Provision for Sales Discount or Discount Allowed

 
To solicit for prompt payment from the company’s trade debtors, Cash discount which is an allowance given when payment is made within […]

Difference Between Provision And Reserve

Quite a number of us use the word provision and reserves interchangeably as if they are the same but actually there is a very great difference between them.

SO LET’S LOOK AT WHAT IS  CALLED A PROVISION:

A Provision:

Is an amount written off to provide for depreciation, or diminution in value of assets or retained to provide for […]