Kind Bhd offered for sale to the public 100 million ordinary shares at RM5 per share on the following terms: On application RM3; on allotment RM1; on 1st call; RM1. The application was received for 120 million ordinary shares and the director resolved that the shares be allotted on a pro-rata basis of ten shares for every twelve shares applied for. Any surplus application monies from the pro-rata were transferred to the allotment account to reduce the money due on the allotment. All money was duly collected when due.

 Prepare the relevant journal entries.

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