Your uncle repays a 250 loan from Tenth National Bank TNB by

Your uncle repays a $250 loan from Tenth National Bank (TNB) by writing a $250 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan. Your Uncle Assets Liabilities Tenth National Bank Assets Liabilities Complete the following T-accounts for your uncle and TNB after your uncle repays the loan. Your Uncle Assets Liabilities

Solution

Before repaying of the loan

Uncle

Assets       250

Liabilities      250

Tenth Bank

Assets     250

Liabilities       0

After repaying of the loan

Uncle

Assets    0

Liabilities     0

Tenth Bank

Assets     250

Liabilities   0

The wealth of the uncle has not changed   True

Assets       250

Liabilities      250