Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 15)
What is the result of a company borrowing money from the bank?
Debit the bank, credit the loan account.
Credit the bank, debit the loan account.
Debit expenses, credit bank.
Credit expenses, debit bank.
Explanation
The bank account will show an increase, and a new liability is created.
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