Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 21 - No. 2)
How is a bank loan recorded in the accounting records?
Debit Loan, Credit Cash.
Debit Cash, Credit Loan.
Debit Loan, Credit Bank Charges.
Debit Bank Charges, Credit Loan.
Explanation
The cash account (asset) increases (debit) and a loan liability (credit) is created.
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