Proteus Dec 11Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Proteus Dec 11This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 11, 2018 at 11:30 am #436387 mansoorParticipantTopics: 424Replies: 542☆☆☆☆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 February 11, 2018 at 3:25 pm #436439 John MoffatKeymasterTopics: 57Replies: 54711☆☆☆☆☆Repaying a loan does not affect reserves!!!!!When we take a loan: Dr Cash Cr LoanWhen we repay a loan: Dr Loan Cr CashAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In