Forums

Back

Contingent liability

Accountancy

If a company has loss and reserves showing dr.balance and if any contigent liability arises due to any legal obligation then I should provide for it or not.

Kamal Kumar

Kamal Kumar

CA Inter

★ 7K+

20-Mar-23 00:05

314

Answers (1)

Contingent liability is disclosed. If payment is probable (>50% chance) and amount can be estimated, then you will create a liability in books irrespective of profit or loss position.

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

20-Mar-23 09:39

Your Reply

Helping students crack CA, CFA & ACCA since 2017. 14,000+ students have trusted us for the best CA,CFA, ACCA online classes. Learn from the best CA, CFA faculty, access top-quality content and clear your exams with confidence

9133 31054 9

9640 11111 0

Support

8-2-293/82/A/89, 2st floor, Road Number 9, Jubilee Hills, Hyderabad, Telangana 500034

Company

About Us

Contact Us

Careers

Information

Testimonials

FAQs

Terms & Conditions

Privacy Policy

Offerings

Buy Courses

Free Courses

Free Resources

Forums

News and Updates

Blogs

Testimonials

APP 1FIN

2026 IndigoLearn.com All Rights Reserved

CIN: U74999TG2017PTC116012 | GSTIN: 36AAECI4332C1Z0 | PAN: AAECI4332C