Explanation:

Provision for depreciation:
Provision for depreciation is an accounting method used to allocate the cost of an asset over its useful life. It represents the gradual reduction in the value of an asset due to wear and tear, obsolescence, or other factors. By setting aside a portion of the asset's value each year, the company can ensure that it has sufficient funds to replace or repair the asset when necessary.

Separate maintenance of provision for depreciation account:
When provision for depreciation account is separately maintained, it means that a separate account is created to record the provision for depreciation. This allows for better tracking and management of the depreciation expenses and helps in determining the accurate value of the fixed assets.

Two accounts:
When provision for depreciation account is separately maintained, two accounts are prepared:

1. Fixed assets account:
The fixed assets account is used to record the initial cost of the assets and any subsequent additions or improvements made to the assets. This account is debited with the cost of the asset when it is acquired and credited with any additions or improvements. It is also credited with the depreciation expense each year to reduce the value of the asset.

2. Provision for depreciation account:
The provision for depreciation account is used to record the depreciation expense for each asset. This account is debited with the depreciation expense each year to allocate the cost of the asset over its useful life. It is credited with any adjustments made to the provision for depreciation, such as when an asset is sold or scrapped.

Example:
Let's consider an example to understand this method. Suppose a company purchases a machine for $10,000 with an estimated useful life of 5 years. The company decides to depreciate the machine using the straight-line method.

1. In the fixed assets account, the machine will be recorded as follows:
- Debit: Machine $10,000

2. In the provision for depreciation account, the depreciation expense will be recorded as follows:
- Debit: Depreciation expense $2,000 ([$10,000 / 5 years])

At the end of each year, the provision for depreciation account will be credited with $2,000, and the fixed assets account will be credited with the same amount, reducing the value of the machine by $2,000 each year.

This separate maintenance of the provision for depreciation account allows for better tracking of the depreciation expenses and provides a clear picture of the value of the fixed assets over time.