Contingent asset and contingent liability
This query is : Resolved
sapna agarwal
(Querist)
22 December 2013
Hi..
what is the treatment to be provided in the books of accounts if contingent liability(if not probable) becomes a real liability and when contigent asset turns into a real asset during a financial year??
Thanks..!
what is the treatment to be provided in the books of accounts if contingent liability(if not probable) becomes a real liability and when contigent asset turns into a real asset during a financial year??
Thanks..!
Nikhil Kaushik
(Expert)
22 December 2013
you book the liability, pay for it and book the corresponding loss in the p&L. The reverse is true to the contingent asset.
sapna agarwal
(Querist)
22 December 2013
Ok...so P&L a/c needs to be debited with the amount of liability and credited with the amount of asset...n we knw d credit n debit effects of these respectively..
sapna agarwal
(Querist)
22 December 2013
Thanks sir..!!
sapna agarwal
(Querist)
22 December 2013
Thanks sir..!!
sapna agarwal
(Querist)
22 December 2013
Thanks sir..!!
Nikhil Kaushik
(Expert)
22 December 2013
welcome Sapna.
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