Question 3 of 20 Africa Traders is a business that sells furniture and equipment items to its customers. Africa Traders obtained a loan from SA Bank for an amount of R500 000 at the beginning of the current financial year ending 28 February 2020. On the 28 February 2020, Africa Traders issued a cheque to SA Bank as a repayment on the loan, for an amount of R90 000. What will be the effect of the loan repayment on the accounting equation? = ASSETS - EQUITY A. LIABILITIES Loan from SA Bank will be debited and this will results in a decrease of liabilities by R90 000. Bank account will be credited and this will results in a decrease in assets by R90 000. No effect on equity. = ASSETS B LIABILITIES Loan from SA Bank will be credited and this will results in a increase of liabilities by R90 000 No effect on equity. -EQUITY Bank account will be debited and this will results in a decrease of equity by R90 000. - EQUITY LIABILITIES Loan from SA Bank will be credited and this will results in an increase of liabilities by | Ron 000 = ASSETS Bank account will be debited and this will results in a increase in assets by R90 000. No effect on equity. = ASSETS D. LIABILITIES Loan from SA Bank will be debited and this will results in a decrease of liabilities by R90 000. - EQUITY Bank account will be credited and this will results in an increase of equity by R90 000. No effect on equity