Illustration 29. At the end of the financial year ending on 31st Dec. 2013, a company finds that there are twenty law- suits outstanding which have not been settled till the date of approval of accounts by the Board of Directors. The possible outcome as estimated by the Board is: Loss Probability 100% 60% 30% 10% 1,20,000 2,00,000 In respect of 5 cases (Win) Next Ten Cases (Win) Lose (low damage) Lose (high damage) Remaining 5 cases: Win Lose (low damage) Lose (high damage) 50% 30% 20% 1,00,000 2,10,000 Outcome of each case is to be taken as a separate entity. Ascertain the amount of contingent loss and the amounting treatment