An entity gets a bank loan of Rs 1,00,000. What elements of the accounting equation shall get affected by this?

Assets & Capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Assets, Liabilities & Capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Assets & Liabilities

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Liabilities & Capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Assets & Liabilities

Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The amount received shall add to the cash i.e. assets of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.

Suggest Corrections

Similar questions

The building has been purchased by taking a bank loan. What elements of the accounting equation shall get effected by this?

The company purchases equipment with its cash available in the company`s bank account. What elements of the accounting equation shall get affected by this?

When loan of Rs.10,000 is taken the from bank, what will be the impact in accounting equation?

If a proprietor buys stock of Rs 10,000 on credit, which of the following items of accounting equation shall be affected?

Q. Mrs Sen opens an account in bank by depositing Rs 10000 and gets back Rs 12850 after 3 years. What was the rate of interest on the it?

Join BYJU'S Learning Program

An entity gets a bank loan of Rs 1,00,000. What elements of the accounting equation shall get affected by this?

The correct option is C Assets & Liabilities Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The amount received shall add to the cash i.e. assets of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.

The correct option is C
Assets & Liabilities

Equation element(s) impacted as a result of transaction : “Assets” & “Liability”. The amount received shall add to the cash i.e. assets of the business & at the same time, the loan shall be a liability to be paid to the bank by the entity.