Question

* 25 Repayment of loan by cheque is
a) Decrease in bank and decrease in liabilities
b) Decrease in cash and decrease in O liabilities
C) Increase in assets and increase in creditors
d) Increase in bank and decrease in liabilities​

Answer 1

Answer:

Decrease in bank and also decrease in liability option b is correct

I hope this answer help you lot

Answer 2

Answer:

Option a) is correct i.e. Decrease in bank and decrease in Liabilities

Explanation:

When we are repaying the loan, our Liabilities decreases and since we are paying by cheque, our bank balance is also decreasing, So option (a) is correct answer.