Skip to main content
Super TutorResources
Chapter 13 of 17
Syllabus

Provisions and Reserves — Syllabus

NIOS · Class 10 · Accountancy

What Provisions and Reserves covers in NIOS Class 10 Accountancy: 4 topics, for the 2026-27 session. Part of the NIOS Class 10 Accountancy syllabus.

50 questions32 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

Free trial, no card needed.

4 Topics · NIOS Class 10 Accountancy · 2026-27

Topics in Provisions and Reserves

1

Meaning and Need

  • A provision is an amount set aside out of profits to meet a specific known liability or loss, the exact amount of which cannot be determined with accuracy.
  • A provision is also defined legally as any amount written off or retained for depreciation, renewals, diminution in the value of assets, or for a known liability of uncertain amount.
  • A provision is a charge against profits and is debited to the Profit and Loss Account.
2

Types of Reserves

  • General Reserve is created without any specific purpose.
  • General Reserve is also called Free Reserve.
  • General Reserve can be used for any future purpose.
3

Reserve Fund and Sinking Fund

  • A Reserve Fund is a reserve whose amount is actually invested outside the business in securities or other assets.
  • In a General Reserve, the amount stays within the business.
  • In a Reserve Fund, the amount is separately invested outside the business.
4

Accounting Treatment and Differences

  • Provision is debited to the Profit and Loss Account.
  • Reserve is debited to the Profit and Loss Appropriation Account.
  • Provision reduces net profit.

Key Concepts

Central concept: Provisions and Reserves in Accountancy

ProvisionReserveGeneral ReserveCapital ReserveSecret ReserveRevenue ReserveSpecific ReserveReserve Fund

Work through every topic in Provisions and Reserves with notes and quizzes

Start This Chapter

Frequently Asked Questions

What are the important topics in Provisions and Reserves for NIOS Class 10 Accountancy?
Key topics in Provisions and Reserves include Meaning and Need, Types of Reserves, Reserve Fund and Sinking Fund, Accounting Treatment and Differences. Study these first, then practise questions on each for the NIOS Class 10 board exam.
How should I revise Provisions and Reserves for the NIOS Class 10 board exam?
Learn the core ideas first, then work through the 50 practice questions on Provisions and Reserves. Revise 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 NIOS Class 10 Accountancy Syllabus

For serious students

Get the full Provisions and Reserves chapter — start free.

Quizzes, flashcards, an AI doubt solver and a study plan for NIOS Class 10 Accountancy. Free to start, no card needed.

Try Super Tutor Free
Try this chapter free