NCERT Solutions for Class 11 Accountancy Chapter 7 Depreciation, Provisions & Reserves

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Class 11 Accountancy NCERT Solutions Chapter 7 Depreciation, Provisions & Reserves

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NCERT Solutions Class 11 Accountancy Chapter 7, are available on Vedantu, in a PDF format, and you can download them for free. These solutions save your time and effort in looking for answers in different books and websites. Vedantu being the one-stop solution to all your NCERT problems makes an effort for the students to make learning a better and hassle-free experience. The Ch 7 Accounts Class 11 NCERT Solutions provide a detailed explanation of the topics covered in this chapter. Hence, when you go through these solutions, you will be able to understand the concepts easily.

NCERT Solutions for Class 11 Accountancy Chapter 7 Depreciation, Provisions & Reserves part-1
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FAQ (Frequently Asked Questions)

1. What are the objectives of accounting?

Accounting is a study that allows a business organization to maintain and track books of accounts efficiently. The objectives of accounting are listed below.

  • To calculate the cost of production of a particular item.

  • To find out net profit or net loss a business organization has gone through in a particular period.

  • To detect fraud or missing money.

  • To keep a record of expenses and income in a particular period.

  • To find out the Cash Balance of a particular day.

  • To find the position of assets and liabilities on a particular day.

  • To help the management department in formulating policies that will benefit the organization.

2. What do you mean by asset and what are the different types of assets?

In order to function in a competitive market, a business organization must possess assets that add value to the specific business objective. An asset in accounting is any resource with an economic value which is owned by a particular individual or any organization collectively with the hope of extracting greater benefits in the future.

The characteristics of an asset are as follows.

  • An asset is both owned and controlled by only the owner.

  • An asset may or may not become a source of finance in the future.

The types of assets are Current assets, Non-Current assets, Tangible assets, Intangible assets, Operating assets, Non-operating and Fictitious assets.