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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?

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closed as off topic by Lliane, Louis Marascio, Bob Jansen, olaker Sep 22 '11 at 9:49

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1 Answer 1

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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.

http://en.wikipedia.org/wiki/Double-entry_bookkeeping_system

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I wasn't sure about where to ask this question but it seemed to fit this stack. I cleared by doubt other way, it seems that you account it in debt or assests. –  user823959 Oct 6 '11 at 13:29

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