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Celine has received $10,000 loan from bank. Correct double entry will be :
(a) Dr. Bank 10,000
Cr. Loan 10,000(b) Dr. Loan
Cr. Bankas per book; answer is (b)
i think answer of the book is not correct. even the option (a) & (b) is not logical.
i think answer should be:
Dr Cash/Bank (our bank a/c) 10,000
Cr Bank(related bank which gave us loan) 10,000
Please advice sir.Assuming that you have copied the question correctly, then the answer is (a).
We credit a loan account, which will appear on the SOFP as a non-current liability.
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