Answer to Question #207084 in Accounting for Nelly

Question

Received a loan from ABC Bank for R30 00 Analyse this in accounting equation

Answer 1

Solution:

The accounting equation is as follows:

Assets = Liabilities + Equity

+3,000 = +3,000     + 0

Taking a loan from the bank will increase assets in terms of cash received and increase liabilities in terms of bank loan owed.