Difference between PROVISION IS and RESERVE

 

	PROVISION IS	RESERVE
	Any debit is in a position of becoming insolvent or unpaid, those debt is called provision for bad debts	company will kept some amount as reserve for bad debts in advance. If any debt becomes bad then it will realize from reserve. That is known as reserves for bad debts.
	Provision for bad debt is about creating a provision to adjust a known debt.	On the other hand, a reserve for doubtful debt signifies a provision which is created for unknown debts that may arise in the future.
	Provision is nothing but a charge against your profit.	Alternatively, a reserve is an appropriation of profit.
	PROVISION IS  KEPT WITH THE NAME OF A PARTICULAR LIABILITY AND IT IS CHARGET TO PROFIT AND LOSS ACCOUNT	RESERVE IS KEPT FROM PROFIT AND LOSS APPROPRATION ACCOUNT FOR GENERAL PURPOSE TO UTILIZE OR ORGANIZATION EXPANSION