Important Questions: CBSE Class 11 Accountancy Chapter 7 Depreciation, Provisions and Reserves

Chapter 7 typically carries 8 to 12 marks in the annual CBSE Class 11 Accountancy paper, distributed across multiple question types. Expect one or two 1-mark MCQs testing definitions or formula recall, two or three 2-mark questions on journal entries or simple calculations, one 3-mark problem requiring ledger accounts under SLM or WDV, and a 5-mark case-based question integrating asset addition, disposal, and method change. The chapter appears in Part A of the theory paper and in the practical section of board exams. NCERT Class 11 Accountancy introduces Straight Line Method, where annual depreciation remains constant, and Written Down Value Method, where the charge decreases each year on the reduced book value. Provisions are mandatory charges against anticipated liabilities like doubtful debts or legal claims, while reserves are voluntary appropriations from profit to strengthen financial position. Understanding the interplay between these concepts is critical for both objective and subjective questions. Schools in Delhi, Mumbai, Bengaluru, and Tier-2 cities often include Depreciation numericals in mid-term and pre-board exams, so early mastery pays dividends. Students should allocate 10-12 hours of focused practice on this chapter, solving at least 15 problems under timed conditions to build fluency.

One-mark questions test recall of definitions, formulae, and basic concepts. CBSE frames these as multiple-choice questions or fill-in-the-blank items. Revise the exact NCERT terminology for provisions and reserves, the depreciation formula under SLM and WDV, and the balance-sheet presentation of accumulated depreciation. Practice speed—you should answer each MCQ in under 30 seconds during the exam. Below are five representative 1-mark questions with concise answers that reflect the board's marking scheme. Drill these until you achieve 100% accuracy, as every mark counts towards your final aggregate. Schools across NCR, Hyderabad, and Chennai frequently lift MCQs verbatim from NCERT exemplar or past-year papers, so familiarity with official wording is an advantage. Keep a flashcard deck of key terms and revise it weekly.

Two-mark questions require brief explanations, simple journal entries, or single-step calculations. CBSE expects you to label your answer clearly—write 'Journal Entry' or 'Calculation' as a sub-heading—and show all steps. Marks are split: one mark for method and one for the correct figure or entry. Common topics include defining provisions vs. reserves, recording depreciation journal entries, and computing first-year depreciation under SLM or WDV. Write legibly and underline account names in journal entries; examiners appreciate clarity. Time allocation: spend no more than 3 minutes per 2-mark question. Below are four representative problems that mirror the official CBSE marking scheme. Practice these with a timer, aiming for neat, exam-ready presentation. Students often lose half a mark for omitting narrations in journal entries, so always write a crisp 'Being depreciation charged' narration.

Three-mark questions demand journal entries plus posting to one or two ledger accounts, or a two-step calculation with clear working. CBSE awards marks for (1) correct journal entry, (2) correct posting format, and (3) accurate closing balance. Always rule ledger accounts with date, particulars, debit, and credit columns. Label each account heading and underline it. Common errors include forgetting the 'By Balance c/d' entry or mixing up the sides. Time target: 5-6 minutes per 3-mark question. Practise ruling ledgers on plain paper at home so the format becomes second nature. Below are three representative questions that cover SLM, WDV, and the interplay between depreciation and asset disposal. Master these patterns and you will handle any variant the board throws at you. Schools in Chennai, Kolkata, and Pune often set exact replicas of these problems in unit tests.

Five-mark questions integrate multiple concepts—asset addition, disposal, change of method, and ledger preparation—within a single scenario. CBSE expects a structured answer: start with given data, show all workings step-by-step, rule neat ledger accounts, and conclude with the final balance. Marks are distributed: 1 for understanding, 2 for calculation, 2 for presentation. Time allocation: 10-12 minutes. Read the question twice, underline key dates and figures, and plan your layout before you write. Common pitfalls include missing pro-rata depreciation when an asset is bought mid-year or forgetting to adjust for scrap value under SLM. Practise at least five case-based problems under timed conditions before the exam. Schools in Mumbai, Delhi NCR, and Bengaluru often lift these from CBSE sample papers or previous years' compartment exams. Below are two representative 5-mark questions with full working that mirror board exam standards. Mastering these patterns will ensure you score full marks in the long-answer section.

CBSE question setters follow a predictable blueprint for Depreciation, Provisions and Reserves. The board draws 60-70% of numerical problems from NCERT exercise questions, tweaking figures and dates. Objective questions test definitions verbatim from the textbook glossary. Two-mark questions ask for journal entries or single-method calculations without ledger postings. Three-mark questions combine journal entry plus one ledger account, often requiring students to rule the account neatly. Five-mark case-based questions integrate three events in a single financial year—asset purchase, addition, disposal, or change of method—and ask for complete ledger accounts and depreciation account. The board loves pro-rata depreciation scenarios: an asset bought on 1 July or sold on 1 October forces students to apply the time proportion formula. Another favourite is the comparison question: 'Calculate depreciation under both SLM and WDV for three years and comment on the pattern.' Students must present side-by-side tables showing year-wise charges. CBSE also tests conceptual clarity with questions like 'Why is provision for doubtful debts a provision and not a reserve?' Expect one question linking depreciation to final accounts—showing Machinery Account in the balance sheet after three years of depreciation. Practising CBSE sample papers from the last three years reveals these recurring patterns. Schools affiliated to CBSE in metros and Tier-2 cities mirror these patterns in internal assessments, so mastering the board's blueprint ensures you score well throughout the year.

Students lose marks on predictable errors that careful practice can eliminate. The most frequent mistake is forgetting pro-rata depreciation when an asset is purchased or sold mid-year; always multiply the annual charge by the fraction of the year the asset was in use. Second, mixing up SLM and WDV formulae under exam pressure—write the formula at the top of your working before substituting numbers. Third, incorrect ledger ruling: students place depreciation on the debit side of the asset account instead of the credit side, or forget to balance accounts with 'By Balance c/d' and 'To Balance b/d' entries. Fourth, omitting narrations in journal entries costs half a mark every time; write a brief 'Being...' clause. Fifth, confusing provisions with reserves in theory answers—provisions are mandatory, reserves are voluntary; memorise this distinction. Sixth, in case-based questions, students calculate depreciation on the original cost even after one year of WDV has passed; always apply the rate to the written-down value. Seventh, forgetting to deduct scrap value under SLM before dividing by life—this is a one-mark error that recurs. Eighth, poor time management: spending 15 minutes on a 5-mark question leaves no buffer for revision. Ninth, illegible handwriting and lack of underlining in ledger headings frustrate examiners and risk mark deduction. Create a checklist of these errors and review it before every mock test. Peer review each other's answers to catch these patterns early.

Beyond the core question bank, attempt these three bonus problems to test your mastery. Q17: A company purchased furniture for ₹60,000 on 1 April 2022. Depreciation 10% SLM. On 1 October 2023, furniture costing ₹20,000 was sold for ₹18,000 (WDV ₹18,000). Calculate profit/loss and prepare Furniture Account for the year ending 31 March 2024. Q18: Plant cost ₹2,00,000 on 1 April 2021. Depreciation 15% WDV. On 1 April 2024, the company changes the method to SLM with remaining life 4 years and scrap ₹20,000. Calculate depreciation for 2024-25 under the new method. Q19: Explain with a numerical example why WDV results in higher depreciation in early years compared to SLM. Solve these under timed conditions—allocate 15 minutes for Q17, 20 minutes for Q18, and 10 minutes for Q19. Check your answers against the NCERT solutions manual or your teacher's key. Track your error rate and note which sub-topics need more drill. Consistent self-assessment builds confidence and speed, both critical for scoring 90+ in Accountancy. Join a study group where peers review each other's ledger formats and journal entries; collaborative learning catches mistakes individual practice might miss.

Allocate the final week before exams to rapid revision rather than new learning. On Day 1-2, solve one full 5-mark question and five 2-mark questions daily. On Day 3-4, tackle two 3-mark ledger problems and revise all MCQs. On Day 5, attempt a full-length mock paper covering the entire syllabus, including this chapter. On Day 6, review your mock paper mistakes and redo incorrect questions. On Day 7, skim NCERT definitions and formulae one last time. On exam day, read the Depreciation question twice before writing; underline key figures and dates. Budget your time: 1-mark MCQs in 30 seconds, 2-mark in 3 minutes, 3-mark in 6 minutes, 5-mark in 12 minutes. Leave a 2-minute buffer for cross-checking calculations. Write formulae and given data at the top of your answer for partial-marking credit even if the final answer is wrong. Use a ruler to draw neat ledger tables; examiners reward presentation. If you run short on time, prioritise journal entries and calculations over lengthy theoretical explanations. Carry a simple calculator (non-programmable) if your school permits it; it saves time on multi-step WDV calculations. Stay hydrated, manage anxiety with deep breathing, and trust your preparation. Students who follow this structured revision protocol typically score 10-12 out of 12 in this chapter.

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