Share issue expenses are adjusted against the share premium account. and are not part of the expenses in profit and loss. So, according to the double entry book keeping one entry would go to the cash flow statement i.e. Decrease the asset size and the other would be part of the balance sheet i.e. Equity and would decrease it.
Therefore since Equity decreases and asset decreases the equation
A=E+L is balanced
32+ Years...
6 years ago

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