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the Journal entry for the above is
Related Expinditure Dr
Contigent liability CR
Wiki User
∙ 11y ago
Wiki User
∙ 9y agoThere is no entry for contingent liability unless liability is clear.
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What is the journal entry for unearned income?
debit unearned incomecredit services liability
How do you increase a liability?
A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.
What is the difference between contingent liability and off balance sheet liability?
There is no difference between Contingent Liability and Off Balance Sheet Liability.
A check drawn by a company for 270 in payment of a liability was recorded in the journal as 720 What entry is required in the company?
Reduction in liability for 550 should be recorded in journal to reduce the excess payment.
Is the contingent liability added to the total liability?
Contingent liabilities are not added to total liabilities but shown as a note to financial statements that these are the liabilities that are contingent on certain event
Journal entry for contingent liability?
A contingent liability is a potential obligation that may arise in the future, depending on the outcome of a future event. It is documented in the financial statements as a disclosure rather than a recognition in the balance sheet. Contingent liabilities can include pending lawsuits, warranties, or product recalls, and their potential impact on the company's financial position should be clearly outlined in the journal entry.
How do you record contingent liabilities?
A contingent liability is recorded in financial statements or books of accounts only if it is a probable contingency and if the liability amount can be estimated. No need to make a journal entryÊif the contingent liability is possible but not probable.Ê
What is the journal entry to record earn-out to seller?
Dr Investment Cr Provision for contingent consideration
What is the journal entry for unearned income?
debit unearned incomecredit services liability
How do you increase a liability?
A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.
What is the difference between contingent liability and off balance sheet liability?
There is no difference between Contingent Liability and Off Balance Sheet Liability.
A check drawn by a company for 270 in payment of a liability was recorded in the journal as 720 What entry is required in the company?
Reduction in liability for 550 should be recorded in journal to reduce the excess payment.
Is the contingent liability added to the total liability?
Contingent liabilities are not added to total liabilities but shown as a note to financial statements that these are the liabilities that are contingent on certain event
How does contingent liability impact earnings?
Contingent liability can impact earnings because it is a projected and future liability. Not knowing what the outcome of the liability is, it can unexpectedly affect a large amount of earnings.
What is the differnent between a current liability for an uncertain amount and a contingent liability?
Under current liability of uncertain amount liability is created on company although actual amount is unknown but in contingent liability, liability is not created on company unless specific date or time or occurence of any contingent action or activity.
Is the journal entry of receiving a phone bill an asset or liability?
phone bill is liability for business as it is payable in future and not an asset as the benefit of it has already taken by business.
Where contingent liability shown in balance sheet?
Contingent liability is not shown in balance sheet because the actual occurance or amount of liability is unknown until some specific future time or event that's why it is shown as note in notes to financial statement section.
