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Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves3 Marks
Question
Give four examples each of ‘provision’ and ‘reserves’.
✓

Answer

Four examples of provision are given below:
  1. Provision for bad and doubtful debts.
  2. Provision for discount on debtors.
  3. Provision for depreciation.
  4. Provision for taxation.
Four examples of reserve are given below:
  1. General reserve.
  2. Capital reserve.
  3. Dividend equalisation reserve.
  4. Debenture redemption reserve.

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