What are Contingent Liabilities? Explain with examples.
Dear Student,
A contingent liability is one where the outcome of an existing situation is uncertain, and this uncertainty will be resolved by a future event.
It includes the following:
1. Claims against the company not acknowledged as Debts.
2. Uncalled liability on partially paid shares.
3. Arrears of Fixed Cumulative dividends.
4. Estimated amount of contracts remaining to be executed on Capital account and not provided for.
For further doubts, do get back to us.
Keep posting!!
A contingent liability is one where the outcome of an existing situation is uncertain, and this uncertainty will be resolved by a future event.
It includes the following:
1. Claims against the company not acknowledged as Debts.
2. Uncalled liability on partially paid shares.
3. Arrears of Fixed Cumulative dividends.
4. Estimated amount of contracts remaining to be executed on Capital account and not provided for.
For further doubts, do get back to us.
Keep posting!!