Financial Instruments
Case 1 Journal entries for Issuer
When Issuer gives Shares/equity to the Investor
In the books of Issuer
Debit Credit
Cash 100
Share capital 100
(Share capital is an obligation to pay on the issuer)
In the books of Investor
Debit Credit
Investment 100
Cash 100
Case 2: When Loan/debt security or debenture
In the books of Issuer
Debit Credit
Cash 100
Debenture payable 100
In the books of Investor
Debit Credit
Investment 100
Cash 100
(Investment is the right to Receive cash)
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