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Former Member
Aug 20, 2008 at 12:12 PM

provision and accrual

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hi,

in the chart of account, i notice there are provision and accrual account. for example, provision for employee expense (48xxxxxx) and accrual for employee expense (39xxxxxx).

1) may i know what is the difference for these 2 account.

2) under what circumstance i need to use provision or accrual?

3) double entry should be the same. debit p&l and credit either provision or accrual. correct?

thanks