X Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each. The amount was payable as follows:
`{:("On Application",:,"Rs. 2 per share,"),("On Allotment",:,"Rs. 2 per share,"),("On First Call",:,"Rs. 3 per share,"),("On Second and Final Call",:,"Balance amount."):}`
Applications for 70,000 shares were received. Applications for 10,000 share were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were reissued to Sultan for Rs. 20,000 , Rs. 4 per share paid-up. The first call money and the second and final call money was called and duly received.
Pass necessary Journal entries for the above transactions in the books of X Ltd. Open Call-in-Advance Account and Calls-in-Arrears Account wherever necessary .

Explanation

*The application for 600 shares (who was alloted 500 shares) has been refunded application money (including call-in-Advance) for 100 shares. i.e., Rs. 6,000-Rs. 5,000 = Rs. 1,000.
50,000 Shares have been allotted to applicants for 60,000 shares. This includes an applicant for 600 shares who was allotted 500 shares. Hence, applicants for 59,400 (i.e., 60,000 - 600) shares were allotted 49,500 (i.e., 50,000 - 500 ) shares.
2. Calculation of allotment money not paid by Ghosh:
`{:("(a) No. of shares allotted to Ghosh=50,000/60,000"xx"6,000=5,000 shares.",),(," Rs."),("(b) Applications money received on shares applied" ("6,000" xx Rs. 2),"12,000"),(" Less: Application money due to shares allotted"("5,000" xx Rs. 2),"10,000"),(" Excess application money adjusted on allotment",ulbar(" 2,000")),("(c) Allotment money due on shares allotted" ("5,000" xx 2),"10,000"),(" Less: Excess application money adjusted (b)"," 2,000"),(" Allotment money due on allotment but not paid by Ghosh",ulbar(ul(" 8,000"))):}`