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If there is a loan note issued then why the current assets or bank is not increased with the proceeds when preparing the statement of financial position
Also if proceeds from the sale of an asset is credited to a suspense account then why the bank is not increased with the amount of the proceeds when preparing the statement of financial position.The proceeds of loan notes will be debited to the bank (within current assets) but I’m assuming that this has already been done when the accounts were prepared and the amount received posted to suspense, i.e. DR Bank CR Suspense
We then need to clear the suspense account and record the loan notes to correct, and so no adjustment is required to the bank account as it has already been processed.
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