Hello Ajayraho,
I think your observation has credence.
The paper would have to get smaller and smaller as it burns.
For one thing all the water in the paper is driven off by the heat. The percentage change in volume night not be all that much, depending upon the makeup of the paper.
Next the carbon compounds are turned into gases that can burn with the oxygen in the air. So the paper itself is actually losing mass.
If you don't disturb the ash remaining, you can still sometimes read the now smaller print, at least where it hasn't curled up on itself.