What will be the treatment of following point?
Dear student
As you haven't provided me with the full question, so i won't be able to provide the amounts of particular accounts. If any amount is given in any cash or bank account, it is assumed that the balance has been utilised in paying off C. Also, no separate entry is passed for keeping car and stock as security with the bank.
For paying off:-
C's capital Account. Dr
To Bank Account
And loan amount will be shown in liabilities in the balance sheet as : bank loan.
Regards
As you haven't provided me with the full question, so i won't be able to provide the amounts of particular accounts. If any amount is given in any cash or bank account, it is assumed that the balance has been utilised in paying off C. Also, no separate entry is passed for keeping car and stock as security with the bank.
For paying off:-
C's capital Account. Dr
To Bank Account
And loan amount will be shown in liabilities in the balance sheet as : bank loan.
Regards