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What Is The Difference Between Provision & Reserves And Surplus?

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Provisons are created by debiting  profit and loss account in order to meet the specific liability in near future irrespective of  wheather there is profit or loss in business it should be deducted from the cocerned asset in asset side of balance sheet
reserves are created by debiting profit and loss appropriation account  in order to meet the unknown liability in near future .it can be order reinvested or distributed to shareholder.it appears on the liabilty side of balance sheet
surplus is nothing but after creation of reserve whatever the excess profit remains is surplus in other words
a. Total assets minus the sum of all liabilities.
B. Excess of a corporation's net assets over the face value of its capital stock.
C. Excess of receipts over expenditures.

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