while True:
    input = raw_input('>')
    # skip the current iteration and jump to the top of the loop and starts the next iteration. Hence, line 8 was printed.
    if input[0] == '#':
        continue
    if input == 'done':
        break
    print 'You entered -',input
print 'Out of while Loop.'

@@ -146,16 +146,20 @@
 e 8 was 
+not 
 printed.

comment updated