Contingent liability journal entry
This query is : Resolved
07 May 2020
Dear All, Pl help for below two questions..
1. Kindly provide the journal entry for contingent liability. Can it be shown in balance sheet or by way of notes to accounts only ?
2. If accruals entries (income and expenses) are not shown in books will it have any accounting impact ?
1. Kindly provide the journal entry for contingent liability. Can it be shown in balance sheet or by way of notes to accounts only ?
2. If accruals entries (income and expenses) are not shown in books will it have any accounting impact ?
07 May 2020
Contingent liabilities are not shown books , but same to be mentioned foot note in balance sheet.
08 May 2020
Thanks for the response. Can you please answer to my second question also..
If accruals entries (income and expenses) are not shown in books will it have any accounting impact ?
If accruals entries (income and expenses) are not shown in books will it have any accounting impact ?
08 May 2020
YES Contingent Liabilities (Which may or may not happen) needs to be explained in foot notes and all the accruals of liabilities needs to be given effect in Financial Statements. As per Accounting Standards all estimated liabilities and expenditures needs to be taken into accounting except for income.
09 May 2020
In mercantile system of accounting you have to book income and expenses year in which actually accrued.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
