Answer to Question #51695 in Accounting for Tatenda

Question

Global-link Ltd issued a prospectus inviting application for $270 000 ordinary shares of $3.00 each and $270 000 worth of 7% debentures of $90 each.
The ordinary shares were offered at premium at $4.50 each. The debentures were offered at par, payable $90 on application.
Applications were received for 290 000 ordinary shares and 3 100 debentures. All ordinary shares and debentures offered were allotted and excess money was refunded

1. Record the above issue in a journal and General Ledger respectively.

Answer 1

A general ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses. In modern accounting software or ERP, the general ledger works as a central repository for accounting data transferred from all subledgers or modules like accounts payable, accounts receivable, cash management, fixed assets, purchasing and projects. The general ledger is the backbone of any accounting system which holds financial and non-financial data for an organization.
The records will be:
Debit Credit
Shares 1,035,000 1,305,000
Debentures 9,000 279,000