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 ?
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Financial Instrument
8y ago#1Think "double-entry" and you've just stated that the transaction costs reduce the liability
What entryis needed to reduce a liability?
Debit
So there's the debit and the credit is ...
... in Cash
OK?
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