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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q58 Proteus, Kaplan
Good morning
this question states that 3m of the principal will be paid at the end of each year from the cash flows generated by the business activity.
my question: the answer does not show any deduction of 3m, either in the p/l statement or the equity. where/how wd this payment of principal will be shown?
I do not have the Kaplan kit – only the BPP Revision Kit.
However I assume that it is the question from the December 2011 real exam.
Repaying loans never appears in the profit statement and never affects the equity!!!!
The double entry when a loan is repaid is credit cash and debit loan (this is basic financial accounts from Paper F3)