In single entry i have come across this transaction says claim against the firm for damage ₹1,55,000 us under legal dispute . Legal expenses 17,000 the firm anticipates defeat in the suit. What is eff

Question

Garvit · Answer

Legal fees as p&l expense and 155000 footnote of balance sheet

Ravina · Answer

Claim for 155000 is a liability create it's provision and legal expenses are payable 1st effect p&l mai aur dusra effect balance sheet mai

Vysakh · Answer

It's a contingent liability it is to be provided for in the balance sheet, debit it in the profit and Loss Account and show it as a contingent liability in the balance sheet.

In single entry i have come across this transaction says claim against the firm for damage ₹1,55,000 us under legal dispute . Legal expenses 17,000 the firm anticipates defeat in the suit. What is eff

3 answers

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