A company issued 20,000 equity shares of ₹100 each at par and 1,000 debentures of ₹1,000 each at ₹950. The whole of the issue has been underwritten by Paul & Co. The whole of the shares are applied for but applications were applied only for 800 debentures. All the applications were accepted. Commission payable to the underwriter is the maximum amount permissible.

Give journal entries to record the above transactions and prepare the balance sheet at this stage, assuming that all amounts due have been received.