Accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2010 Answer true or false if false state the reason

1. Contingent liabilities are repayable with a year
2. The sale proceeds on sale of old asset is shown in income and Expenditure Account
3. Under single entry system, both the credit and debit aspects of all transaction are recorded.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 February 2010 1.False. Current liabilites only repayable with in a year.contingent liabilites are only provision payable when need to decide based on the fact

2.Partly true.Only Profit or loss on sale of old asset need to be shown in Income & Expenses account

3.False.In Double entry system we are recording the both Dr/Cr Aspects not in single entry system

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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16 February 2010 Contingent liabilities are based on occurance or Non occurance of certain event..It is in the nature of proviosn...Liabilities are contingent on happening or non happening of the events...

2.Profit or Loss on sales of the transactions needs to be entered in Income and expenditure accounts.....

3.Single entry systems books will not be maintained according to double entry principle

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