Question

Give four examples each of provision and reserves.

Answer 1

Four examples of provision are given below.

1. Provision for bad and doubtful debts

2. Provision for discount on debtors

3. Provision for depreciation

4. Provision for taxation

Four examples of reserve are given below.

1. General reserve

2. Capital reserve

3. Dividend equalisation reserve

4. Debenture redemption reserve