Contigent liabilities cannot be exactly determined until it occurs like in the case of , settlement of PF to a retiring employee , settlement of compensation , so an estimated value is shown at the foot notes of balance sheet and in the next year balance sheet it is recorded as liability after its occurrence

Contingent liabilities appear as a footnote below the balance sheet.

Explanation:
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of three main sections: assets, liabilities, and shareholders' equity. The assets represent what the company owns, the liabilities represent what the company owes, and the shareholders' equity represents the owners' investment in the company.

Contingent liabilities, also known as potential liabilities, are liabilities that may arise in the future depending on the outcome of uncertain events. These liabilities are not certain to occur, but there is a possibility that they may arise. Examples of contingent liabilities include pending lawsuits, warranties, guarantees, and tax disputes.

Contingent liabilities are not included in the main body of the balance sheet because they do not meet the criteria for recognition as a liability. In order for a liability to be recognized in the balance sheet, it must meet the definition of a liability (present obligation), be measurable with reasonable accuracy, and it is probable that an outflow of resources will be required to settle the obligation.

However, contingent liabilities are still important for users of the financial statements to know about, as they can have a significant impact on the company's financial position and performance. Therefore, they are disclosed in the footnotes to the balance sheet. The footnotes provide additional information and explanations about the items presented in the balance sheet.

By disclosing contingent liabilities in the footnotes, companies are able to provide transparency and ensure that users of the financial statements have access to all relevant information. This allows users to make informed decisions and assessments about the company's financial position and performance.

In conclusion, contingent liabilities appear as a footnote below the balance sheet because they are not recognized as liabilities in the main body of the balance sheet but are still important for users of the financial statements to know about.