Which is not to be disclosed in the balance sheet. Of thr company?
Answers
A contingent liability that is both probable and the amount can be estimated is recorded as 1) an expense or loss on the income statement, and 2) a liability on the balance sheet. As a result, a contingent liability is also referred to as a loss contingency.
Explanation:
Capital as usual is shown on the liabilities side of the company’s balance sheet. Share capital of the company is shown under the heads shareholders fund. Paid up capital is the real capital which has been actually paid by the shareholders. This capital is added to complete the total of liabilities side. As per Schedule VI Part I of the Companies Act, the Share Capital should be shown in the Balance Sheet in the following manner.
Presentation of Share Capital in Company’s Balance Sheet:
As per Revised Schedule VI of Companies Act, 1956, Share Capital is to be disclosed in a Company’s Balance Sheet in the following manner: