(Comprehensive Illustration).
A company invited applications for 50,000 Equity Shares of Rs. 10 each payable as follows:
On application Rs. 3, on allotment Rs. 3, on first and final call Rs. 4.
Applications were received for 1,10,000 shares. It was decided
(i) to refuse allotment to the applicants for 10,000 shares,
(ii) to allot 50% to Mr. X who has applied for 20,000 shares,
(iii) to allot in full to Mr. Y who has applied for 10,000 shares,
(iv) to allot balance of the available shares on pro rata basis among the other applicants, and
(v) to utilise excess application money in part payment of allotment and final call.
Pass Journal entries till the stage of allotment assuming that the total amount due on allotment is received.

Explanation