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A loan's principal payment will not be included on the income statement. The principal payment is a reduction of a liability, such as Notes Payable or Loans Payable, which is reported on the balance sheet. The principal payment will also be reported as a cash outflow on the Statement of Cash Flows.
no only the relevant interest
No. This is debited against the loan on the balance sheet. (Therefore reducing the liabilities). However the interest element is charged to the income account as an expense.
