KL Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at par. The amount was payable as follows:
On Application-Rs. 3 per share,
On Allotment-Rs. 4 per share, and
On First and Final Call-Rs. 3 per share.
The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows:
`{:("Category","No. of Shares Applied","No. of Shares Allotted",),(" I"," 1,60,000"," 80,000",),(" II"," 80,000"," 20,000",),(,,,):}`
Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited shares were reissued at Rs. 15 per share fully paid-up.
Pass necessary Journal entries for the above transactions in the book of XL Ltd. Open Calls-in-Arrears and Calls-in-Advance Account whenever required.

Explanation

Working Notes:
`{:(1." Adjustment of Application Money:",,"Rs."),(" Application money received on shares applied (3,00,000"xx"Rs. 3 )",,"9,00,000"),(" Less: 20% applications rejected (20% of 3,00,000,i.e.,60,000"xx"Rs. 3)-Refuned (A)",,"1,80,000"),(,,bar(7,20,000)),(" Less: Application money adjusted on allotted shares (1,00,000"xx"Rs. 3)",,"3,00,000"),(" ( Category I and II)",,),(" Excess Application money (Category I and II)",,barul(ul(4,20,000))):}`
`{:(2.,"Adjustment of Excess Application Money:",," Rs."),(,"Category I: Application money received (1,60,000"xx "Rs. 3)",,"4,80,000"),(, " Less: Application money adjusted on allotted shares (80,000"xx"Rs. 3)(C)",,"2,40,000"),(," Ecess application money",,bar(2,40,000)),(," Less: Excess application money to be adjusted on allotment",,"2,40,000"),(," Surplus",,ulbar(ul("
"Nil))),(,"Category II: Application money received on shares applied (80,000"xx"Rs. 3)",,"2,40,000"),(," Less: Application money due on shares allotted (20,000"xx"Rs. 3)",," 60,000"),(," Excess Application money",,bar(1,80,000)),(," Less: Money to be adjusted on Allotment (20,000"xx"Rs. 4 ) (D)","80,000",),(," Money to be adjusted on first and final call (20,000"xx"Rs. 3) (E)",ul(60,000),ul(1,40,000)),(," Excess money to be refunded (B)",,ul(ul(" "40,000
)
)):}`
`*` total Application Money Refunded (A+B)=Rs. 1,80,000+Rs. 40,000=Rs. 2,20,000.
`*` Excess Application Money to be adjusted on Allotment (C+D)=Rs. 2,40,000+Rs. 80,000=Rs. 3,20,000.
`*` Excess Application Money to be adjusted on First and Final Call (Call-in-Advance)=Rs. 60,000 (E).