What is journal entry for business started with bank loan?
Answers
Answered by
20
heyaa,,,
according to your quest there will be two entry;
cash a/c Dr
to bank a/c.
(being cash received from bank as loan.)
now,
cash a/c Dr
to capital a/c.
(being business started with cash)
___________________________
hope it helps. ☺☺☺
according to your quest there will be two entry;
cash a/c Dr
to bank a/c.
(being cash received from bank as loan.)
now,
cash a/c Dr
to capital a/c.
(being business started with cash)
___________________________
hope it helps. ☺☺☺
Answered by
0
Answer:
The bank loan account is debited and the capital account is credited.
Explanation:
In this question, we have to make the journal entry the given statement. In this question, we have to make the journal entry for business started with a bank loan. The starting the business a bank loan means to start the business by borrowing the money from bank. In this case, two account is effect first the bank loan account and the second is capital account. As we receive the money the bank loan account is debited and the capital account is credited.
Bank Loan A/c Dr
Capital A/c
(Being entry is made for commencement of business from bank loan.)
#SPJ3
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