what is contigant liability how it will be effect in nooks of accounts
Contigent liability is the liability which may or may not occur.To be more clear on this one your are giving bank surity to your friend, it will be reflect in your books as contigent liability. if your firend repays the bank loan without any defaults then that liability will not affect you. If he fails to repay the amount you are the one suppose to repay that loan. So at that point of time that loan will be
liability for you. This liability is said to be as contigent liability.
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