Is bank loan asset or liability?

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1229429

2026-05-14 16:45

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It is actually both. Cash received from a bank loan is debited to the asset Cash, at the same time repayment of that loan is listed in Liabilities as usually a Note Payable.

This means that your Assets increase by the amount of the loan as well as your liabilities, while Owners Equity (stock holder equity) remains unchanged.

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