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<p><strong>(a) on the liability side of the balance sheet</strong><strong>(b) on the asset side of the balance sheet</strong><strong>(c) in the profit and loss account</strong><strong>(d) below the balance sheet as a foot note</strong></p> <p><strong>(e)Please mention other means if any.</strong></p>
A contingent liability is recorded in the books of accounts only if the contingency is probable and the amount of the liability can be estimated.(a) on the liability side of the balance sheet .
Otherwise in the foot notes of balance sheet
option A LIABILITY SIDE OF THE BALANCE SHEET
Contingent liability is recorded as an expense or loss on the income statement, and a liability on the balance sheet. A loss contingency which is possible but not probable, or the amount cannot be estimated, will not be recorded in the accounts. Rather, it will be disclosed in the notes to the financial statements.
(d) below the balance sheet as a foot note
The correct answer a
A
(a)
OF COURSE
ANSWER A
These liabilities are not recorded in a company's accounts and shown in the balance sheet when both probable and reasonably estimable as 'contingency' or 'worst case' financial outcome
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