esented below are the year-end balance of the assets and liabilitiespertaining to Starlight Merchandising      2020    2019 Cash    P150,000    P120,000 Equity investment at FVPL    260,000    230,000 AR, net    360,000    400,000 Inventories    705,000    635,000 Prepaid Expenses    130,000    128,000 Accounts payable    182,000    136,000 Other current liabilities    141,000    125,000 Bonds Payable    200,000    200,000 Additional investment made by the owner during 2020 was P150,000 but a P200,000 personal liability was paid out of company's funds. What is the company's profit or loss for the year ended December 31, 2020?  30,000

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.