Revision Notes for CBSE Class 11 Accountancy Chapter 7 - Free PDF Download
FAQs on Depreciation, Provisions, and Reserves Class 11 Notes CBSE Accountancy Chapter 7
1. What is depreciation?
Depreciation is a process by which the value of goods and fixed assets decrease over time. It is an accounting method whereby the asset’s value is reduced over time. There are plenty of reasons why depreciation takes place. Wear and tear of goods, expiration of the legal rights and obsolesces of the goods contribute to the depreciation of fixed assets. We need to understand what is depreciation so that we can calculate the actual profit or tax. For a better grounding in the subject, refer to class 11 depreciation notes.
2. What is meant by provisions?
A provision in accounting is a term that is used to describe the method of laying aside some money for any unforeseen liabilities. Since this amount cannot be determined beforehand, a rough assumption is made. If students still have difficulty understanding the topic, they can use provisions and reserve class 11 notes.
3. What is the meaning of reserves?
Reserves set an amount of money aside from the profits encountered in business to strengthen the company. These reserves can be set out under general reserve, specific and secret reserve. The concept is very easy to grasp and does not require much study. To better understand the nuances of the chapter, consider using provision and reserve notes in class 11.
4. Is depreciation a provision or reserve according to Chapter 7 of Class 11 Accountancy?
Accumulated depreciation expenditures are referred to as provisions for depreciation. The process through which the value of commodities and fixed assets decreases over time is known as depreciation. It is a technique of accounting in which the asset's value is lowered over time. Depreciation is a non-cash expenditure that decreases the company's net profits and is recorded on the income statement. Provision for bad debts is a liability, not a reserve, for the firm.
5. Is Chapter 7 of Class 11 Accountancy easy?
For students who enjoy Accountancy, this is an easy chapter. However, for some, it may be a tad bit difficult and even sometimes confusing. Therefore, you can refer to NCERT Solutions by Vedantu, which is available free of cost. These solutions can be downloaded in a PDF format too. The best part is that these solutions are designed by subject matter experts with vast experience and a thorough understanding of the CBSE curriculum.
6. What are the causes of depreciation according to Chapter 7 of Class 11 Accountancy?
Time, obsolescence, a permanent drop in market worth, and weather and accidental factors are all external sources of depreciation. Internal causes arise from the action of any natural or intrinsic cause in the asset. Internal assets depreciate due to wear and tear, fatigue, depletion, degradation, and other factors. Wear and tear include capital assets such as plants, machinery, and buildings that lose value over time due to continual usage. These variables have nothing to do with the asset.
7. What does Chapter 7 of Class 11 Accountancy brief us about?
Depreciation, provisions, and reserves are discussed in detail in Vedantu’s revision notes of Chapter 7. These notes will assist students in understanding this topic better and preparing for their exams. This chapter is about the decline of asset value over time and the characteristics of such declines. Students can refer to depreciation provisions and reserves solutions in addition to the notes to obtain a better knowledge and perspective on the subject. Use Vedantu's Class 11 Chapter 7 revision notes to have a better grasp of the entire topic.
8. From where can I download solutions of Chapter 7 of Class 11 Accountancy for free?
If you are looking for Accountancy solutions for free, you can visit the official Vedantu website. Right from revision notes to master classes, Vedantu offers it all. You can also get your doubts cleared by teachers online to ensure that your studies never stop. At Vedantu, you can also download all the solutions in a PDF format to ensure there are no breaks in your studies.