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

Provisions and Reserves

ICSE · Class 11 · Accountancy

Complete topic list for Provisions and Reserves in ICSE Class 11 Accountancy. Key concepts, sub-topics, and what to focus on for board exams.

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 syllabus and more.

Try Super Tutor — Free

1,000+ Class 11 students started this chapter today

4 Topics · ICSE Class 11 Accountancy

Topics in Provisions and Reserves

1

Meaning and Nature of Provisions

  • A provision is an amount set aside to meet a future expense or loss whose exact amount is uncertain.
  • A provision is created for a definitely existing or known liability whose exact amount cannot be determined accurately.
  • There is no point in making a provision unless the liability actually exists.
2

Meaning and Nature of Reserves

  • Reserves means amount set aside out of profits to meet future uncertainties.
  • A reserve is created only out of profit and is an appropriation of profit, not a charge against profit.
  • Reserves reduce divisible profits, not net profit.
3

Difference Between Provisions and Reserves

  • A provision is created for meeting a known liability.
  • A reserve is meant for meeting an unknown liability.
  • A provision is a charge against profit and may be created even though there is no profit.
4

Types of Reserves

  • Reserves are broadly classified into open reserves and secret reserves.
  • Open reserves are shown in the balance sheet.
  • Open reserves are of two types: revenue reserves and capital reserves.

Key Concepts

Central concept: Provisions and Reserves in Accountancy

ProvisionReserveRevenue ReserveCapital ReserveGeneral ReserveSpecific ReserveSecret ReserveReserve Fund

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 Syllabus

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