Restructuring provision

The D/E for setting up ANY provision - i.e. to recognise a liability - is: Dr Expense (e.g. wages and salaries) Cr Provision (e.g. for redundancy settlement If a provision has been recognised that should not have been recognised - e.g. it is not "de facto" a liability at the reporting date - expense is overstated - and hence profit understated. The correcting journal will be to "write-back" the provision: Dr Provision Cr Expense