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

Top

Download PDF

FAQ

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

Bookmark added to your notes.

View Notes

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 Accountancy Class 11 Solutions

Introduction to Accounting

In very simple terms you can understand accounting to be a process in which we record the financial transactions of a business systematically. This process requires the understanding of mainly three aspects. They are as follows.

Record Keeping System: To keep a track record of all the transactions that have taken place one needs to be aware of certain policies, procedures, and standardized forms.
Transaction Tracking: While recording transactions it is also important to know about the types of transactions such as customer orders, payments made, etc.
Financial Reporting: Some of the financial transactions need to be treated differently than others and recorded accordingly. Financial reporting involves the tracking of expenses, revenues, profits, capital invested, etc. and gaining a deep insight into them.

The Layers of Accounting

In Class 11 Accounts Chapter 7 NCERT Solutions, you will come across questions on the different layers of accounting as an overview of the chapter.

Accounting has different parts, layers, or types. Every organization is independent to decide these layers on its own but some of the layers which are common everywhere are mentioned below.

Taxes: It is pretty obvious that since it is a business, taxes play an important role and every business organization has to be completely transparent about it. Thus, accounting involves keeping a record of taxes paid, pending, etc.
Payroll: Payrolls deal with not just paying the employees that are currently working but also other employee-related payments such as social security, workman's comp, etc.
Payable and Receivable Accounts: A business runs smoothly when funds run smoothly. So, the accountant has to keep a track record of money that has been spent at a particular place and money that is received after-sales.
Bookkeeping: If the accountant ignores certain small-sized transactions after a time those gather into big numbers and ruin the complete accounting. Hence, every small and every big transaction has to be recorded.

(Image to be added soon)

The End Result of Accounting

Once the transactions are recorded and stored it is time that you analyze the result. But, how? Does one have to go through all the spreadsheets and the smallest transactions? Well, no.

Records are generated in case the investor or owner of the business wants to analyze the performance of his business. The main kinds of reports generated are as follows.

Statement of Profit and Loss
Balance Sheets
Assets and Liabilities Report
Retained Equity

A Brief Introduction to Depreciation

In NCERT Accountancy Book Class 11 Solutions Chapter 7, one term that you will come across is 'Depreciation'. Let us discuss it briefly. To begin with, depreciation in accounting refers to the cost that has been allocated to a particular asset in a given period. It gives an idea about how much of the value of an asset has been used up or exhausted in the previous years. Depreciation can greatly contribute to a company's profits if calculated in the right way.

This short overview and the NCERT Solutions Class 11 Accountancy Chapter 7 PDF will help you to learn more about the topic and understand depreciation Class 11 CBSE Solutions thoroughly.

Conclusion

While these were just some of the introductory topics in ch 7 Accounts Class 11, you can get the fully solved and well-explained solutions of all NCERT problems given in chapter 7.

Fun Facts

Some of the very interesting and exciting fun facts related to accounting are as follows.

World Accounting Day is celebrated on November 10.
The very popular bubblegum was invented by an accountant named Walter Diemer in the year 1928.
Bookkeeping and the words that can be derived from it are the only words in the English language that have three consecutive sets of repeating letters.

Solved Examples

Q1. Which of These Is Not an Example of Revenue?

Dividends
Interest received
Taxes
Sales Revenue

Ans: 3. Taxes

Do you need help with your Homework? Are you preparing for Exams?

Study without Internet (Offline)

Download PDF

NCERT Solutions for Class 11 Accountancy Chapter 7 Depreciation, Provisions & Reserves part-1

Loading More Solutions...

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.