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How is this recorded in the statement Statement of profit and loss and other comprehensive income  ...

How is this recorded in the statement

Statement of profit and loss and other comprehensive income  

5. The long term loan from People’s Bank was obtained on 1 September 2016 at an interest rate of 11,5% per year. The loan was payable in four (4) equal annual instalments. The first instalment was paid on 31 August 2019. The second instalment is payable on 31 August 2020. Interest is paid during March each year.

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Answer #1

"First of all cut off procedure will be applied to calculate the interst charge for the specific year.

Than that interest charges will be deducted from income statement.

The installment payment or say the repayment of loan will not have any direct effect on Income Statement, but the interest expense will be lowered due to this repayment.

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