Multiple choice

A sum of Rs. 20,000 is taken as a loan from Punjab National Bank. The correct entry is

  1. Punjab National Bank's A/c Dr 20,000
    To Cash A/c 20,000
  2. B/R A/c Dr 20,000
    To Punjab National Bank's A/c 20,000
  3. Cash A/c Dr 20,000
    To Punjab National Bank's A/c 20,000

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Since cash is received, we would debit cash. Punjab National Bank is credited because it is our creditor. 

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