Provision

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Provision for Bad debt --> Bad Debt Expenses

Provision for Audit Fee --> Audit Fee Expenses

Provision for Secretarial fee --> Secretarial Fees

Provision for other expenses --> Expenses

Provision accounts is similar to accruals accounts so that it can be shown as a separate line item in the balance sheet. It is for presentation and clarity purposes which is up to individual person who prepares the accounts.


At [A/c Entry], click [GL Journal]

 

Click [Add]

 

 

At COA (Chart of Account) type "PROV", provision for short,

A list of Provision accounts will appear for you to choose, move the arrow key up or down on your keyboard to select the correct accounts.

 

At the Type, select the entry to be credited or debited (In this case, is to be credited). You can also manually type "C" when the cursor key is at the Type field.

 

Next, select the second account to debit the bad debt expenses, O-B003

 

For provision that exceeds more than one year, you need to post to non-current provision with class code as G00  (See seamless - Provision)

 

 


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http://realtimme.cloudapp.net/basic/index.html?gl_provision.htm