my question concerns the 3m payment of the principal every year.
I understand that we dont include this in the cashflow setup.
However, the reserves have to be reduced by the 3m...no?
The payment of 3m will reduce the loan amount AND it wd also reduce the equity...no?
could you please explain this.
thank u
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Proteus Dec 11
8y ago#1Repaying a loan does not affect reserves!!!!!
When we take a loan: Dr Cash Cr Loan
When we repay a loan: Dr Loan Cr Cash
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