Hai Priya This is Madhu

Contigent Liability Means Future Liability

We have to Show Contigent Liability at Foot NOte on Balance 
Sheet

This amount is not Included in Balance Sheet

This is a Future Liability

Hi priya & Madhu this is sakthi.

In my personal point of view 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.

hi, this is shekhar

A potential expense, one that may or may not eventuate, 
depending how events turn out, but which should be provided 
for in properly kept accounts or budgets. Examples of a 
company's contingent liabilities might include damages from 
a pending lawsuit against the company; guarantees given to 
secure another company's borrowings; or having the 
company's name as endorser on a bill of exchange that is 
yet to mature


      if any accounts concepts is there plz send me my mail 
id m_shekhar_05@yahoo.co.in