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What if we got a loan to increase the Capital , what's the transactions or the entries?

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Question added by Osama Abdul mageed - FMVA® , Senior Accountant , PIMCO
Date Posted: 2017/04/04
Omar Shalaby CPA
by Omar Shalaby CPA , BANKING ANALYST , CANADIAN WESTERN BANK., EDMONTON/ALBERTA

A company can obtain a loan for many reasons, however, if the company wishes to obtain a loan to have liquidity, this will increase cash in the assets and offset by a loan liability in the liabilities, therefore, the loan will no help show better financial statements. 

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