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The company receives cash from a bank loan. ASSETS?

1. Increase 

2. Decrease 

3. No Effect

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Question ajoutée par Imdad Hussain Rajput , Assistant Sales Manager , Forego
Date de publication: 2015/08/01
Utilisateur supprimé
par Utilisateur supprimé

Increase>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Mehboob Ali Laghari
par Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

The Assets will increase...

Mohammed Asim Nehal
par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Answer1. Increase ......................

Farasat Ali
par Farasat Ali , Senior Credit Representative , Zones IT Solutions

Increase ................................

Aamir Aamir
par Aamir Aamir , Accountant , gupta r.k. & garg

assets will increse & liability will increase also cash.......dr     to bank loan..

Ali Mohammed
par Ali Mohammed , Lecturer in Accounting, Finance, Maths and Economics , Admas University College

When a company receives cash from a bank loan, cash would increase since more money comes into the business. Hence, cash is an asset, Asset would increase. The word receives cash is a give a way in that the cash increases leading to Asset increase. On the other hand, the liability of the company would increase in that they acquired a debt that needs to be paid within a time frame. Hence the accounting entry is Dr cash (Increase), Cr Loan (increase)

Francis Vincent Revamonte
par Francis Vincent Revamonte , Accountant , Invest Group Overseas LLC (IGO)

1.) Increase. The Increase in Asset is due to the received cash

Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

the answer is #1. Increase 

Michael Lagunday
par Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

My answer is1. Increase.

 

When the company receives cash from bank loan, there is an increase of both cash and loan. The entry would be debit to cash and credit to loans.

Gyasuddin Ahamad Ansari
par Gyasuddin Ahamad Ansari , Accountant , Shiv Shakti Dall Mill Pvt.Ltd.

cash from bank loan means cash inflow in the co.so.cash from bank loan increase assets along with increasing loan to the co.

Iftikhar Hussain Shah
par Iftikhar Hussain Shah , Senior Manager Audit & Assurance , Deloitte LLP

Option "1" Assets increase.

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