Issuing stocks expenses treated as : 1- Deduction from additional paid-in capital . 2- income statement expense . 3- Another account .

1-

Expenditure on share issues is ideally written off to profit and loss account in the year it is incurred.

The company incurs the following expenses at the time of issue of shares:

>>>>Preparation of project report

>>>>Brokerage charges

>>>>Professional fees to company secretaries, auditors, legal advisors and others.

>>>>Payments to merchant bankers – managers to the issue, underwriters, advisors to the issue, and so on

>>>>Printing and distribution of prospectus, application forms, publicity material, etc,

>>>>Media publicity and advertisement

>>>>>Fee paid to the Government such as Ministry of Corporate affairs, Regulatory etc.

profit loss a/c,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Income   Statement   Expense