If a company issues commercial paper and the bookkeeper, bank A, receives a buy order from bank B, in which bank B creates credit to buy the commercial paper, does the company has a credit in bank B or does bank B owe himself and has the asset of the commercial paper?
closed as off topic by Lliane, Louis Marascio, Bob Jansen, olaker♦ Sep 22 '11 at 9:49
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This is off topic in my humble opinion, but.
The Company owes Bank B and Bank B has the paper as an asset on its balance sheet.