The provision in excess of the amount considered necessary for the purpose it was originally made is also considered as reserve
* Provision is charge against profits while reserves is an appropriation of profits
* Creation of reserve increase proprietor's fund while creation of provisions decreases his funds in the business.
* Provision is charge against profits while reserves is an appropriation of profits
* Creation of reserve increase proprietor's fund while creation of provisions decreases his funds in the business.
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