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Transaction Costs on Equity Raise (APIC Deduction)

Deducting legal and placement agent fees directly from the equity raise proceeds.

Account NameTypeDebit ($)Credit ($)
APIC — Preferred StockEquity (-)50,000.00-
Cash / Accounts PayableAsset/Liability (-)-50,000.00

💡 Accountant's Note

Under IAS 32, directly attributable costs of issuing equity instruments are deducted from equity. They do not hit the income statement — they reduce the net proceeds received.

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