04 December 2009
what is the difference between ascertained liabilities & contingent liabilities please help me with the examples & if there are the list of the liabilities than please forward it to me.
04 December 2009
ascertained liabilities are those liabilities which are certain in nature like you have taken loan so you have to pay but someone else has taken loan and you are giving guarantee then in case of default of repayment of that loan, you could be liable to pay then it will be termed as contingent liabilities.
04 December 2009
Few examples of contingent liability are given below:- 1)Outstanding amount of bank guarantee. 2)outstanding amount of letter of credit. 3)Estimated amount of contracts remaining to be executed on capital account and not provided for. 4)Claims against the company not acknowledged as debts. 5) disputed tax demand contested in appeals and not provided for.
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