Question

Give the journal entry * nikhil took a loan of 50000 in cash from vivek on his business

Answer 1

Answer:

In the books of Nikhil

Cash A/c  Dr

  To Vivek A/c

In the books of Vivek

Nikhil A/c   Dr

    To Cash A/c

Explanation:

Here when Nikhil's  books of records are maintained the cash coming in his business is a debt to him. Vivek is the debtor lending him loan in cash.

As far as Vivek's account is credited cash is going out of business and he is a creditor lending out money.