0
Yes, the letter of credit are to be shown as Contingent Liability. As the occurrence of this liability depends on the happening or non happening of uncertain future event.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Is your annual income shown on a credit report?
No.
Is that bank overdraft expense?
Yes, bank overdraft is an expense and is shown in debit side of the Profit & Loss A/c. It's also a liability and is shown in 'Liabilities' of the Balance Sheet of an individual or a company.
Time required for credit to credit card to be shown.?
Usually about 12 to 24 hours but I personally dont like taking chances and wait for about 36 to 48 hours.
How do you pay off all the credit card all at once?
You pay off a credit card balance by paying the full balance shown on your monthly statement at least 7 days before the due date.
Why is reserves and surplus a part of liabilities?
reserves and surplus are shown into liability side of the financial statiment, since reserve is the money set aside from the capital for future use hence defining surplus as a debit in the business thus attributing to its liabiltiness,
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
Where does letter of credit comes in balance sheet?
the letter of credit is not shown in the balance sheet, since it's a contingent commitment but it should be disclosed in a separate note
Where contigent liabilites are shown in balance sheet?
Contingent liabilities does not show in balance sheet rather it is provided in notes to financial statements as a note about contingent liability and detail etc.
What accounts are shown an credit side of TB?
Liabilities, Equity, and Revenue.
Is contingent liability credit or debit?
Contingent liability is not shown in financial statments until it if considerably clear that liability will be happend and until that time it is shown as a note in notes to financial statement section.
Is a liability a credit or a debit?
All liabilities has credit balance as normal balance that’s why shown under liabilities side of balance sheet as well while all assets has debit balance.
Is liability a debit or credit balance?
All liabilities has credit balance as normal balance that’s why shown under liabilities side of balance sheet as well while all assets has debit balance.
Is mortgage payable debit or credit?
Mortgage payable is liability for business and like all liabilities it also has credit balance and shown in liability side of balance sheet.
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.
Accounts payable is considered a what on trial balance credit or debit?
An account payable is a liability and would be considered a credit. Remember liabilities maintain a credit balance. Even when listing on the Trial Balance, all liabilities (including accounts payable) will be shown as their actual type, hence account payable is a credit.
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.
Does AP appear on the balance sheet or income statement?
Accounts payable is shown in liabilities side of balance sheet as it is the liability for business for purchasing goods on credit from vendors.
