Commerce Exam > Commerce Questions > "Bank loan is paid off". How will you treat t...
Start Learning for Free
"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why?
Most Upvoted Answer
"Bank loan is paid off". How will you treat this adjustment? Will it a...
Adjustment for Bank Loan Paid Off
- When a bank loan is paid off, it is considered as a reduction in liabilities.
- This adjustment should be recorded in the journal entry to reflect the new status of the company's financial position.
- The journal entry for this adjustment would be:
- Debit: Bank Loan
- Credit: Cash
- This adjustment will not appear in the Revaluation account as it is not related to the revaluation of assets and liabilities.
- The revaluation account is used to record adjustments for changes in the value of assets and liabilities due to external factors such as inflation or changes in market conditions.
- The adjustment for a bank loan paid off is an internal event that does not affect the value of assets or liabilities.
- Therefore, it is not relevant to include in the revaluation account.
Community Answer
"Bank loan is paid off". How will you treat this adjustment? Will it a...
Here, asset (bank) and bank loan (liability), both are affected simultaneously by the same amount. Therefore, it should not be recorded in the Revaluation A/c. When bank loan is paid-off, Bank A/c is debited (decrease in asset) and Bank Loan A/c will be credited (decrease in liability)
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why?
Question Description
"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why?.
"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why?.
Solutions for "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? defined & explained in the simplest way possible. Besides giving the explanation of
"Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why?, a detailed solution for "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? has been provided alongside types of "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? theory, EduRev gives you an
ample number of questions to practice "Bank loan is paid off". How will you treat this adjustment? Will it appear in Revaluation a/c? If not, why? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup