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Old 06-27-2007, 03:43 PM
snazzlefrag snazzlefrag is offline
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Quote:
Originally Posted by Matymus
I believe they are debited to the cash account. I hope I'm not wrong on that one.

You are not wrong on this one Matymus,

Assuming that the loan is made TO the company, it would INCREASE (debit) the cash account (current asset). At the same time, it would also INCREASE (credit) the Bank Loan Payable account (current liability).

Hope that helps,
Snazzlefrag
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