02-19-2009, 03:18 PM
Dear,
One needs to understand the basics of accounting if he is looking for some explanation.
You can pass following entry
......... Expense (Debit) Rs. 5
..........Provision already made (Debit) Rs. 10
.........................Bank account (Credit) Rs. 15
You can also pass following entries which will give same results
First entry
..............Expense (Debit) Rs. 5
...................Provision (liability) (credit) Rs. 5
Second entry
.............Provision-liability (Debit) Rs. 15
...................Bank (Credit) Rs. 15
So buddy if you will make out the T accounts, you will get same results.
I passed two entries for the sake of clarity.
I don't know why you failed to understand.
Regards,
KAMRAN.
One needs to understand the basics of accounting if he is looking for some explanation.
You can pass following entry
......... Expense (Debit) Rs. 5
..........Provision already made (Debit) Rs. 10
.........................Bank account (Credit) Rs. 15
You can also pass following entries which will give same results
First entry
..............Expense (Debit) Rs. 5
...................Provision (liability) (credit) Rs. 5
Second entry
.............Provision-liability (Debit) Rs. 15
...................Bank (Credit) Rs. 15
So buddy if you will make out the T accounts, you will get same results.
I passed two entries for the sake of clarity.
I don't know why you failed to understand.
Regards,
KAMRAN.