Question

Define bank and credit account.
​

Answer 1

The deposit account is a liability of the bank and an asset of the depositor (the account holder). ... Such accounts, generally called loan or credit accounts, are subject to similar but reverse principles of a deposit account. In accounting terms, a loan account is an asset of the bank and a liability of the borrower.

Answer 2

Answer:

The term bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit, therefore, is the total amount of money a person or business can borrow from a bank or other financial institution.