Model: Over-subscription—Issue of debentures at a premium Govil & Co. Ltd. issued 10,000, 10% debentures of Rs.50 each at a premium of 20% payable as:
|
On Application |
: |
Rs.15 |
|
On Allotment |
: |
30 (Including Premium) |
|
On First & Final Call |
: |
Rs.15 |
Applications were received for 20,000 debentures. All allotment was made proportionately, oversubscription being applied to the amount due on allotment. All money was duly received.
Pass necessary journal entries. Also pass the entry if the whole amount of debenture is collected in one installment only.