General Studies · Bank Accounting Entries
What is the typical double-entry accounting record made by a bank when a commercial loan disbursement is processed for a borrower?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit the bank's income account, credit the capital reserve account
- 2Debit the customer's savings account, credit the loan liability account
- 3Debit the customer's loan asset account, credit the customer's current/operative account✓
- 4Debit the loan account, credit the cash vault account directly
Correct answer
Debit the customer's loan asset account, credit the customer's current/operative account
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