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WorksheetsBORROWINGS PART 2
Total questions: 10
Worksheet time: 2mins
FIXED AMOUNT borrowed.
Loan
Bank overdraft
When an overdraft is approved, cash at bank increase.
TRUE
FALSE
Long term borrowings =
Non-current liability
Current liability
CURRENT PORTION of long term borrowings
Non-current liability
Current liability
When a LOAN is taken:
DR cash at bank CR loan
DR loan
CR cash at bank
When LOAN is REPAID back:
DR loan
CR cash at bank
DR cash at bank CR loan
Bank balance = $200. Withdraw $2000. Bank overdraft =
$2200
$2000
$1800
A bank overdraft reduces when I deposit cash into the bank account.
TRUE
FALSE
Interest expense PAID.
DR interest expense
CR cash at bank
DR cash at bank CR interest expense
interest expense INCURRED BUT NOT PAID yet.
DR interest expense
CR interest expense PAYABLE
DR interest expense PAYABLE CR interest expense
