Home
NCERT Soltions
Class 11
Accountancy
Depreciation, Provisions and Reserves
State whether the following statements are true or false: Deprec...

State whether the following statements a | Class 11 Accountancy Chapter Depreciation, Provisions and Reserves, Depreciation, Provisions and Reserves NCERT Solutions

Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter Depreciation, Provisions and Reserves. This page offers a step-by-step solution to the specific question from Exercise 20, Question 1: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 1:

State whether the following statements are true or false:

Depreciation is a non-cash expense.
Depreciation is also charged on current assets.
Depreciation is decline in the market value of tangible fixed assets.
The main cause of depreciation is wear and tear caused by its usage.
Depreciation must be charged so as to ascertain true profit or loss of the business.
Depletion term is used in case of intangible assets.
Depreciation provides fund for replacement.
When market value of an asset is higher than book value, depreciation is not charged.
Depreciation is charged to reduce the value of asset to its market value.
If adequate maintenance expenditure is incurred, depreciation need not be charged.

Answer:

1. True
2. False
3. False
4. True
5. True
6. False
7. True
8. False
9. False
10. False

Other Questions of Chapter Depreciation, Provisions and Reserves

Give four examples each of ‘provision’ and ‘reserves’.

Explain the concept of ‘secret reserve’.

Name and explain different types of reserves in detail.

Explain determinants of the amount of depreciation.

Describe in detail two methods of recording depreciation. Also give the necessary journal entries.

Discuss in detail the straight line method and written down value method of depreciation. Distinguish between the two and also give situations where they are useful.

What are the effects of depreciation on profit and loss account and balance sheet?

Distinguish between straight line method and written down value method of calculating depreciation.

Explain basic factors affecting the amount of depreciation.

State with reasons whether the following statements are True or False ;
(i) Making excessive provision for doubtful debits builds up the secret reserve in the business.
(ii) Capital reserves are normally created out of free or distributable profits.
(iii) Dividend equalisation reserve is an example of general reserve.
(iv) General reserve can be used only for some specific purposes.
(v) ‘Provision’ is a charge against profit.
(vi) Reserves are created to meet future expenses or losses the amount of which is not certain.
(vii) Creation of reserve reduces taxable profits of the business.

Popular questions of class 11 Accountancy

Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. Of which he paid ₹ 1,00,000 for furniture, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Mr. Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Mr. Peace. In the first week of next month there was a fire accident and he lost ₹ 30,000 worth of stationery. A part of the machinery, which cost ₹ 40,000, was sold for ₹ 45,000.

From the above, answer the following :
1. What is the amount of capital with which Mr. Sunrise started business?
2. What are the fixed assets he bought?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. What are the expenses?
6. What is the gain he earned?
7. What is the loss he incurred?
8. Who is the debtor? What is the amount receivable from him?
9. What is the total amount of expenses and losses incurred?
10. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner.

Q: Explain the qualitative characteristics of accounting information.

Complete the following sentences with appropriate words:
(a) Information in financial reports is based on .....................
(b) Internal users are the ..................... of the business entity.
(c) A ..................... would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.
(d) The Internet has assisted in decreasing the ..................... in issuing financial reports to users.
(e) ..................... users are groups outside the business entity, who uses the information to make decisions about the business entity.
(f) Information is said to be relevent if it is ......................
(g) The process of accounting starts with ............ and ends with ............
(h) Accounting measures the business transactions in terms of ............ units.
(i) Identified and measured economic events should be recording in ............ order.

Q: Describe the role of accounting in the modern world.

Q: What do you mean by an asset and what are different types of assets?

Differentiate between source documents and vouchers.

What is a journal? Give a specimen of journal showing at least five entries.

Define accounting and state its objectives.

Enumerate informational needs of management.

Complete the following work sheet:
(i) If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
(iii) Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii) The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept.

Recently Viewed Questions of Class 11 Accountancy

If the opening capital is Rs. 50,000 as on April 01, 2016 and additional capital introduced Rs. 10,000 on January 01, 2017. Interest charge on capital 10% p.a. The amount of interest on capital shown in profit and loss account as on March 31, 2017 will be :
(a) Rs. 5,250 (b) Rs. 6,000
(c) Rs. 4,000 (d) Rs. 3,000

Name the parties to a promissory note.

Credit balance of bank account in cash book shows :
(i) Overdraft
(ii) Cash deposited in our bank
(iii) Cash withdrawn from bank
(iv) None of these

Q: Explain the qualitative characteristics of accounting information.

‘An accounting report is essential a report which must be able to fulfil certain basic criteria' Explain? List the various types of accounting reports.

List the distinctive advantages of a computer system over a manual system.

State the relationship between information and decision.

Rahul’s trial balance provide you the following information :
Debtors Rs. 80,000
Bad debts Rs. 2,000
Provision for doubtful debts Rs. 4,000

It is desired to maintain a provision for bad debts of Rs. 1,000
State the amount to be debited/credited in profit and loss account :
(a) Rs. 5,000 (Debit) (b) Rs. 3,000 (Debit)
(c) Rs. 1,000 (Credit) (d) none of these.

Enumerate main objectives of accounting.

Which of the following is correct :
(i) Operating Profit = Operating profit – Non-operating expenses – Non-operating incomes
(ii) Operating profit = Net profit + Non-operating Expenses + Non-operating incomes
(iii) Operating profit = Net profit + Non-operating Expenses – Non-operating incomes
(iv) Operating profit = Net profit – Non-operating Expenses + Non-operating incomes

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Depreciation, Provisions and Reserves.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

Latest Blog Posts

Stay updated with our latest educational content and study tips

Smart Questions to Ask in a Parent-Teacher Meeting | PTM Made Easy

Parent-Teacher Meetings (PTMs) are more than quick updates on marks — they’re a chance to build a real partnership between home and school. A good Parent-Teacher Meeting conversation helps parents see beyond grades. It opens up insights about a child’s strengths, struggles, emotions and even hidden talents. When parents participate actively, they don’t just track […]

The Secret to Smarter Learning — Building Strong Critical Thinking Skills

In today’s world of endless information , knowing how to think is more important than knowing what to think . From school projects to real – life decisions , critical thinking helps students question ideas , analyze facts and form logical conclusions . But what exactly does critical thinking mean ? Simply put , it’s […]

Study Smarter, Not Harder: Build Productive Habits That Stick

Every student dreams of better grades , stronger focus and more study time – but the real challenge isn’t starting, it’s staying consistent . Building productive study habits is not about studying all day , it’s about studying smart . In today’s fast – paced digital world, distractions are everywhere – from endless phone notifications […]

The Hidden Risks of Online Gaming for Children — Is your child safe while gaming online?

Online gaming has rapidly become one of the most popular pastimes among children. Whether it’s multiplayer mobile games , PC adventures or console challenges , kids are spending more time than ever in the virtual world . On the surface, gaming seems entertaining and even educational – improving hand- eye coordination , teamwork and problem […]

View All Blog Posts

Add Comment

Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 20 , Question 1: State whether the following statements are true or false: Depreciation is a non-cash expense. ....

State whether the following statements a | Class 11 Accountancy Chapter Depreciation, Provisions and Reserves, Depreciation, Provisions and Reserves NCERT Solutions

Add Your Answer

Other Questions of Chapter Depreciation, Provisions and Reserves

Popular questions of class 11 Accountancy

Recently Viewed Questions of Class 11 Accountancy

Study Tips for Answering NCERT Questions:

Latest Blog Posts

Smart Questions to Ask in a Parent-Teacher Meeting | PTM Made Easy

The Secret to Smarter Learning — Building Strong Critical Thinking Skills

Study Smarter, Not Harder: Build Productive Habits That Stick

The Hidden Risks of Online Gaming for Children — Is your child safe while gaming online?

Add Comment

Quick Navigation

Chapters for Class 11 Accountancy

Subjects for Class 11

Popular This Week

Study Tools

Scientific Calculator

Formula Sheet Generator

Progress Tracker

Study Planner

Students Also Read

Sponsored

Need Help?

SaralStudy

Download Our App

Quick Access

State whether the following statements a | Class 11 Accountancy Chapter Depreciation, Provisions and Reserves, Depreciation, Provisions and Reserves NCERT Solutions

Add Your Answer

Other Questions of Chapter Depreciation, Provisions and Reserves

Popular questions of class 11 Accountancy

Recently Viewed Questions of Class 11 Accountancy

Study Tips for Answering NCERT Questions:

Latest Blog Posts

Smart Questions to Ask in a Parent-Teacher Meeting | PTM Made Easy

The Secret to Smarter Learning — Building Strong Critical Thinking Skills

Study Smarter, Not Harder: Build Productive Habits That Stick

The Hidden Risks of Online Gaming for Children — Is your child safe while gaming online?

Related Resources

Exam Information

Full Form

Calculator

Glossary

Add Comment

Quick Navigation

Chapters for Class 11 Accountancy

Subjects for Class 11

Popular This Week

Study Tools

Scientific Calculator

Formula Sheet Generator

Progress Tracker

Study Planner

Students Also Read

Sponsored

Need Help?

Boost Your Academic Performance

Get Started Today!