What is meant by the provision in accounting?

Setting aside a specific amount from income pertaining to the current accounting period to meet an uncertain liability or expenses in the future - See more at: http://www.accounting-world.com/2012/10/introduction-to-accounting-and-its.html#sthash.Ej3JvQZc.dpuf

shortly, provision is a reserve amount from income to meet future uncertain expenses or liabilities.

In financial accounting, a provision is an account which records a present liability of an entity to another entity.
The recording of the liability affects both the current liability side of an entity's Balance Sheet as well as an appropriate expense account in the entity's Income Statement.
A provision can be a liability of uncertain timing or amount.
A liability, in turn, is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
" Provision is that action of business in which business organisation reserves his money for future losses for safeguarding business ."

Accounting rules require a company to review its operating data periodically and ensure that loans and customer receivable amounts are accurate. These rules include generally accepted accounting principles and international financial reporting standards.

In accounting Provision or Reserve or Total are of two types "Capital Reserve" and "Revenue Reserve" Capital Reserve is usually generated to replace fixed assets or when the fixed asset is fully depreciated or it is also generated by the increase in the value of fixed asse (Asset Revaluation Reserve).
It can't be distributed as dividend to the share holders but only in the form of bonus shares.
On the other hand "Revenue reserve (General Reserve) is generated out of profit for Provision of depreciation, provision for bad and doubtful debts, provision for tax,, provision for contigent liability.
It can be distributed as dividend to the share holders.