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Bank loan is an assets or liabilities?

Jodi Brooks

in Student Loans

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Samantha Barber on April 27, 2019

In reality, it is both. Cash received from a bank loan is debited to the asset Cash, at the same time amortization of loan that appears in the Liabilities as usually a Note Payable. This means that the increase of the Asset by the amount of the loan, as well as your liabilities, while Owners Equity (stock holder equity) remains unchanged.


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