Question

Accounting equation .....borrowed loan from bank

Answer 1

Bank will increase and liability (loan) will increase

Answer 2

Accounting Equation

Asset = capital + liabilities

1)Borrowed loan from bank

2 accounts affected  Cash and Bank loan

• Cash is the asset where its comes into the business therefore its increase in the asset

• Bank loan is the liability of the business which need to be repaid in installments . therefore increase in liability

Conclusion

Increase in asset (cash A/c )  And increase in liability ( Bank loan A/c )