Accountancy, asked by callme1, 11 months ago

pls give the entry of this transaction and give me reason also

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Answered by Anonymous

1

Journal Entry :

Cash A/C Dr Rs.25,000

To Loan from Bank A/C Rs.25,000

(being loan from bank taken against fixed deposit)

Reason :

Cash A/C is debited since cash comes into the business of Ramesh in the form of Loan.

Loan A/C is credited as liability arises to pay back the Loan.

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