Struggling to get my mind round provision accounts
When I set up a provision for something, I think I credit the provision account. But what do I debit?
All I can find is that the credit is offset by a reduction in profit in both profit/loss account and in balance sheet. I can understand that but something must take the debit entry.
... ponder, ponder ...
Just wondering if the provision a/c takes both credit and debit, credit for the balance sheet and debit for the p-l a/c ???