what is contingent liability ?
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A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.
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hello Frnd ...
A contegent liability is a potential liability which may occur or may not occur in the future.
It is not a liability yet but it could be in future.
These kind of liability depends on certain events which will take place in near future.
e.g. Ram filed a suit against a company called ABC LTD. worth ₹ 40,000
Now, It's a contegent liability for ABC ltd. Because they don't know either they need to pay Ram or they don't need to pay.
It's depends upon the winning or lossing of Ram.
hope it helps
jerri
A contegent liability is a potential liability which may occur or may not occur in the future.
It is not a liability yet but it could be in future.
These kind of liability depends on certain events which will take place in near future.
e.g. Ram filed a suit against a company called ABC LTD. worth ₹ 40,000
Now, It's a contegent liability for ABC ltd. Because they don't know either they need to pay Ram or they don't need to pay.
It's depends upon the winning or lossing of Ram.
hope it helps
jerri
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