Depreciation, Provisions and Reserves
In the NCERT Financial Accounting textbook for Class 11, this topic explains how the cost of a fixed asset is spread over its useful life. You study the causes of depreciation, such as wear, passage of time and obsolescence, and compare the straight line and written down value methods with their journal entries and asset account presentations. The lesson then distinguishes provisions, charged against profit to provide for known liabilities or expected losses like doubtful debts, from reserves, which are appropriations of profit that strengthen the financial position, including revenue and capi
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