Skip to main content
Super TutorResources
Chapter 19 of 28
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Chapter Summary

Provisions and Reserves

ICSE · Class 11 · Accountancy

Summary of Provisions and Reserves for ICSE Class 11 Accountancy. Key concepts, important points, and chapter overview.

65 questions30 flashcards5 concepts

Interactive on Super Tutor

Studying Provisions and Reserves? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for chapter summary and more.

Try Super Tutor — Free

1,000+ Class 11 students started this chapter today

Overview

Provisions and reserves are created to make a business financially stronger and to deal with future uncertainties. A provision is made for a known liability whose exact amount is uncertain, while a reserve is created out of profits to meet future uncertainty or to strengthen the financial position.

Key Concepts

A provision is an amount set

A provision is an amount set aside to meet a future expense or loss whose exact amount is uncertain. It is created for a definitely existing or known

A reserve is an amount set

A reserve is an amount set aside out of profits to meet future uncertainties. It is not created for a known liability or asset decline. It is an appro

A revenue reserve is created by

A revenue reserve is created by setting aside part of net profit from normal business operations. It is available for distribution as dividend and inc

A capital reserve is created out

A capital reserve is created out of capital profits, such as profit on sale of fixed assets, premium on issue of shares and debentures, and profit pri

A general reserve is a revenue

A general reserve is a revenue reserve created out of profits to meet unforeseen contingency. It is not made for a specific purpose and is also called

Learning Objectives

  • To understand the meaning of provisions and reserves
  • To distinguish clearly between provisions and reserves
  • To study the types of reserves, including revenue reserve and capital reserve
  • To understand general reserve, specific reserve, secret reserve, and reserve fund
  • To learn why provisions and reserves are created in business

Frequently Asked Questions

What are the important topics in Provisions and Reserves for ICSE Class 11 Accountancy?
Provisions and Reserves covers several key topics that are frequently asked in ICSE Class 11 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Provisions and Reserves — ICSE Class 11 Accountancy?
Understand the core concepts first, then work through the 65 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Provisions and Reserves

All 28 chapters — ICSE Class 11 Accountancy Chapter Summary

For serious students

Get the full Provisions and Reserves chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 11 Accountancy.

Try Super Tutor Free
Try the full chapter — Free