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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Proteus-Dec 11
In this question i do not understand why the repayment to the loan: 3M not to be subtracted from Reserves, as the question said that the T Co shall pay 3M each year which source from the Cash flow of the business, pls. advise
Much thanks
Repaying a loan does not affect reserves – the double entry to repay a loan is Cr Cash Dr Loan.
