Contingent asset and contingent liability
This query is : Resolved
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..!
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.
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..
22 December 2013
Thanks sir..!!
22 December 2013
Thanks sir..!!
22 December 2013
Thanks sir..!!
22 December 2013
welcome Sapna.
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