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What Is Provision | Tally ERP 9 & Tally Prime

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Provision Entry in Tally

What Is Provision Tally ERP 9 & Tally Prime — ***What Is Provision | Tally ERP 9 & Tally Prime***

If you work in Tally, then you definitely need to know what is Provision and Provision Entry in Tally, because without this we will not be able to work well in Tally ERP 9 and Tally Prime and our work is complete. That’s why today we are going to tell you Provision Entry in Tally, what is Provision? giving information.

What is provision (Provision Entry)

Provision means provision, when we set aside a certain amount for future fixed expenses for the conduct of our business, business, which is called Provision or Provision. Like Salary Provision, Bad Debts Provision, Provision for TDS, Fixed Assets Provision.

Example: – If at the end of the financial year of our business, such as in the month of March, the accounts of our business are closed, then in this situation we pay the expenses incurred in March in April, so for the expenses in March, we We prepare provision like electricity bill ₹ 2000, salary payment ₹ 20000, thus we will pay these provisions in April which will be for the month of March.

Provision entry in tally If we take the example related to our daily life then we can understand in this way if my monthly salary is ₹ 20000 which is for the month of March, now out of this salary I am getting Electricity Bill – 1500, Children’s School – 2000, Kitchen – 8000 and other fixed expenses – 500 out of this amount, keeping 12000 aside is called Provision or Provision.

What is said in Entry Tally of Provision (Provision Entry)

What is said in Entry Tally of Provision? So the answer is that whenever we enter Provision related Transaction in Tally, then we have to use Payment Voucher and Journal Voucher for that.

Entry Tally of Provision is entered in two places, first entry, when we withdraw the amount for provision, we will enter it in the payment voucher, similarly when we spend from the provision item, then its entry as adjustment in Journal Voucher will have to do.

Provision Entry in Tally (Provision Entry)

Q 1. Provision (provision) of ₹ 5000 was kept for the payment of electricity bill.
Provision Electricity Bill Expenses A/c Dr. 8000
To Cash A/c Cr. 8000

Ledger Creation: – Here 2 Ledgers have been made, one Provision Electricity Bill Expense A/c which will be under Group Provision, similarly the second Cash A/c which remains already made, we do not need to make it.

Provision Entry in Tally :- The Voucher Entry of the above transaction will be on Payment Voucher because here we are keeping the money separately for the provision, which we will spend in future due to which our Cash will decrease.

Q 2. Electricity bill of ₹ 5000 was paid from Provision (Provision) item.
Electricity Bill Expense A/c Dr. 8000
To Provision Electricity Bill Expense A/c Cr. 8000

Ledger Creation: – Here 2 Ledgers have been made, one Electricity Bill Expense A/c which will be Under Group Indirect Expense, similarly the second Provision Electricity Bill Expense A/c which is already made, we do not need to make it.

Provision Voucher Entry in Tally :- Voucher entry of above transaction will be on Journal Voucher because we are here
We are keeping the money separately for the provision, from which we will pay, so here we have to make adjustments between the two accounts, so here we will use the general voucher.

Advantages and Disadvantages of Provision (Provision Entry)

The main advantage of provision is that we can keep the amount safely for any future expenses, through which we can keep the accounts in the right way.

The disadvantage of provision is that there is profit or loss in business, business, we have to keep provision for the upcoming expenses.

Make the following transactions a general entry in the books of Trisha Traders.

Conclusion : Provision Entry in Tally

Provision This is an important option through which we can withdraw amount for upcoming expenses for our business business Today we learned what is provision or how to enter provision in tally.

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