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Why do the payable bills and interest payable not come under provision account?

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تم إضافة السؤال من قبل ashwin gr
تاريخ النشر: 2017/05/18

Thats because the provision is an estimate made under the prudence concept for a probable or expected loss against any recievable or asset, while Payable bills are expenses that have been accrued and are not probable but confirmed so its not an estimate when u have certainity about some expense also the benefit against it has been obtained 

Vipul Kapadia
من قبل Vipul Kapadia , Asst. Finance Manager , Abu Dhabi National Oil Company

Provisons are made when the accurate amount of liabilities can not be ascertained. Once it is established it will be expressed under as accrued. And payable bills (assumed as creditors for goods) are called sundry creditors or otherwise as a line item "Bills Payable"

Basit Abass Mumuni
من قبل Basit Abass Mumuni , Administrative Assistant , Trolley

provision account is account set aside in case of any liability

RAJU PADMANABHAN
من قبل RAJU PADMANABHAN , Chief Accountant , Woodhouse International

Provisions are not actual expenses whereas payables are actual expenses

Arvind Agarwal
من قبل Arvind Agarwal , SAP Application Analyst , SGB SMIT Group

Because they are accrued expenses. 

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