MCS Ltd. issued 40,000 shares of Rs. 10 each payable as Rs. 2 per share on application, Rs. 4 per share on allotment and the balance in two equal instalments.
Applications were received for 80,000 shares and the allotment was made as follows:
(a) Applicationsof 50,000 shares were allotted 30,000 shares.
(b) Application of 30,000 shares were allotted 10,000 shares.
Neeraj, to whom 600 shares were allotted from Category (a), failed to pay the allotment money. Pass necessary Journal entries up to allotment only.