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Journal entryBeginnerPublished

Question · Initial recognition of a financial instrument

Epsilon SA grants a partner a loan of 200,000, which it disburses on the day the contract is signed. Case assumptions: the loan is measured at amortised cost and its initial fair value equals the amount disbursed. Record the initial recognition of the loan.

Loan amount
200,000
Your answer
  1. Line 1

    Account Loan at amortised cost

  2. Line 2

    Account Cash

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