Question

at the end of the accounting year bills receivable discounted rs 32000 would be shown​

Answer 1

Answer:

on the assets side of balance sheet

Answer 2

Answer:

Bills receivable discounted by Rs 32000 would be shown as Contingent Liability in the Balance sheet footnote at the end of the accounting year.

Explanation:

Contingent Liabilities-

• A contingent liability is a potential future liability, such as unresolved lawsuits or the fulfilment of product warranties.
• A liability should be recorded in a company's accounting records if it is likely to occur and the amount can be reasonably estimated.
• Contingent liabilities are recorded to ensure that financial statements are accurate and meet GAAP or IFRS requirements.
• Despite the fact that the bills have been discounted, they are not due, making it a contingent liability, or an off-balance-sheet item.

Because the outcome is contingent on the future due to the existence of a past event, bills receivable discounted are a contingent liability.

#SPJ3