East Coast Ltd made an issue of 30,000 shares of ₹ 10 each payable as ₹ 3 on application; ₹ 5 on allotment; and ₹ 2 on call. 93,200 shares were applied for and owing to this heavy over-subscription, allotments were made as under:
(1) Applicants for 21,500 shares (in respect of applications for 2,000 shares or more) received 10,200 shares.
(2) Applicants for 50,600 shares (in respect of applications for 1,000 shares or more but less than 2,000 shares)received 12,600 shares.
(3) Applicants for 21,100 shares (in respect of applications for less than 1,000 shares) received 7,200 shares. Cash thus received after satisfying the amount due on application was applied towards allotment and call money and any balance was then returned. All monies due on allotment and calls were received. Pass necessary Journal Entries and show Cash Book and Ledger Accounts relating to this issue in the books of the company.