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Contingent li...

Question

Contingent liabilities is shown as __________ in Balance Sheet.

A

liability

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B

equity shareholders fund

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C

footnote

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D

none of the above

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Solution

The correct option is C footnote
As per Schedule III of Companies Act $2013$ , Contingent liabilities are shown as footnote in the Balance Sheet. Contingent liabilities are those liabilities that may occur in future. These are not liabilities now. So these can not be shown in balance sheet.

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