Is loan a credited or debited account?

1 answer

Answer

1184621

2026-04-06 00:05

+ Follow

A loan is considered a liability for the borrower and is recorded as a credited account on the balance sheet. When a loan is received, the cash account is debited to reflect the increase in cash, while the loan account is credited to indicate the obligation to repay. In summary, loans are credited in the borrower's accounting records.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.