X Ltd. invited applications for 50,000 shares of Rs. 10 each at 10% premium, payable as Rs. 3 on application, Rs. 3 on allotment and balance amount on first and final call. Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis. The excess money received on application was to be adjusted against allotment only. A shareholder who applied for 6,000 shares, could not pay the call money and his shares were accordingly forfeited.
Pass necessary journal entries.

Explanation