D Vijay Pharma Claims Associate Interview Questions and Answers

A journal entry of provision is a record of setting aside funds for future expenses or liabilities.

• Journal entry should include a debit to the provision account and a credit to the corresponding expense account.

• Provisions are made based on estimates of future expenses, such as warranties, legal claims, or bad debts.

• Example: Debit Provision for Bad Debts $10,000, Credit Bad Debt Expense $10,000.