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Contingent liability is shown . . ?

<p><strong>(a) on the liability side of the balance sheet</strong><strong>(b) on the asset side of the balance sheet</strong><strong>(c) in the profit and loss account</strong><strong>(d) below the balance sheet as a foot note</strong></p> <p><strong>(e)Please mention other means if any.</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/12/02

 A contingent liability is recorded in the books of accounts only if the contingency is probable and the amount of the liability can be estimated.(a) on the liability side of the balance sheet .

 

Otherwise in the foot notes of balance sheet

Deleted user
by Deleted user

(a) on the liability side of the balance sheet

MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

option A LIABILITY SIDE OF THE BALANCE SHEET

SHINU SAM JOY
by SHINU SAM JOY , Accountant , Neat and Net LLC

Contingent liability is recorded as  an expense or loss on the income statement, and  a liability on the balance sheet. A loss contingency which is possible but not probable, or the amount cannot be estimated, will not be recorded in the accounts. Rather, it will be disclosed in the notes to the financial statements.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(d) below the balance sheet as a foot note

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

The correct answer a

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

A

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

(a)

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

OF COURSE 

ANSWER A 

ahmad ALrashde
by ahmad ALrashde , Auditor , Tala abu Ghazaleh organization international

These liabilities are not recorded in a company's accounts and shown in the balance sheet when both probable and reasonably estimable as 'contingency' or 'worst case' financial outcome

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