Which among the following item does not appear on the balance sheet of a company?

Contingent Liabilities

The correct answer is option 3- Contingent Liabilities.

Contingent Liabilities does not appear on the balance sheet of a company. Contingent Liabilities are disclosed separately and do not appear directly on the balance sheet.

A contingent liability is a potential liability that may or may not occur, depending on the outcome of a future uncertain event. It is not recorded in the books of accounts and disclosed in the notes to the financial statements.

The balance sheet shows all the assets owned by the concern, all the obligations or liabilities payable to outsiders or creditors and claims of the owners on a particular date. 

OTHER OPTIONS

• Reserve and Surplus- It is a part of shareholders funds. This represents the accumulated profits of the company that are retained in the business instead of being distributed as dividends. It includes General Reserve, Capital Reserve, Surplus etc.

• Share capital- It is a part of shareholders funds. This is the money invested by shareholders in the company in exchange for shares. There are two types of share capital- Equity Share Capital and Preference Share Capital. It is shown under Shareholders' Funds in the Equity and Liabilities section of the balance sheet. It forms the foundation of company ownership as it is a permanent source of capital.

• Fixed assets- It is a part of non-current asset. These are long-term tangible assets used in the operations of the business which are not meant for resale. Examples include Buildings, Machinery, Land, Vehicles etc. It is appeared under the Assets section as Non-current Assets. These are used in day-to-day business to generate revenue over many years.