Tuesday, 15 November 2016

Journal entry for Contingent Asset

Journal entry for Contingent Asset


There is no journal entry for contingent asset, because contingent asset is a possible future asset depends on the confirmation of a future event.  We know that in accounting, we only record the historical events. Thus the contingent asset is not recorded in the books of accounts. However, it is important to remember those contingent assets are disclosed in the financial statements.

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