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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.

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โˆ™ 2014-03-29 13:52:15
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Q: Is contingent liability credit or debit?
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Related questions

Is liability credit or debit?

Increase liabilities = credit Decrease labilities = debit

Will Letter of credit be shown as contingent liabilities?

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.

Is a mortgage repayment for a business a credit or a debit entry?

Credit to cash, debit to the liability account for the mortgage.

Are accrued expenses a debit or credit balance?

credit because it is a liability.

What is the purchase of equipment on credit recorded by?

A debit to equipment and a credit to liability

Does a debit decrease liability?

Yes, a debit decrease liability and a credit increase liability. if a debtors/customer make the repayment obligation, it will decrease debtors, meaning decrease in liability.

Does accrued salaries have a debit or credit balance?

Credit; liability accounts are always credit

Is contingent liability is a current liability?

Contingent Liability is a current liability in most cases, but there is possibility for non-current contingent liability as well.

How is a liability increased by a credit or debit?

Liability has credit balance as normal balance so credit increases the liability which means addition to current liability will increase the overall liability and reduction in liability will reduce overall liability.

Is land a credit or debit?

Debit - expense or asset Credit - income or liability As land is an asset, it is a debit entry with the credit being to Bank/Cash/Sellor of the land

What would decrease liability?

Debit balance would decrease the liability as credit balance increases the liability.

Journal entry for contingent liability?

There is no journal entry for contingent liability because contingent means which is not occurred and not sure that when will that liability will be created or liability is depended on certain event that's why contingent liability is shown under financial statements notes as contingent liability.

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