Financial InstrumentForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial InstrumentThis topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 16, 2018 at 1:14 pm #452264 marine09MemberTopics: 13Replies: 6☆Sir,When a company issues a loan note and there’s a transaction cost , this reduces the value of the liability right ? However , what is the accounting entry of the transaction cost ? Does it go to the Income Statement as an expense ? May 16, 2018 at 2:41 pm #452282 MikeLittleKeymasterTopics: 27Replies: 23327☆☆☆☆☆Think “double-entry” and you’ve just stated that the transaction costs reduce the liabilityWhat entryis needed to reduce a liability?DebitSo there’s the debit and the credit is …… in CashOK?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘Financial Instrument’ is closed to new replies.