X Ltd. invited applications for 11,000 shares of Rs. 10 each issued at 10% premium

payable as:

On application Rs. 3 (including Rs. 1 premium)

On allotment Rs. 4 (including Rs. 1 premium)

On 1st Call Rs. 3

On 2nd & final call Rs. 2

Application were received for 24000 shares.

Category I : One fourth of the shares applied for allotted 2000 shares.

Category II: Three fourth the shares applied for allotted 9000 shares.

Remaining applicants were rejected. Mr. Mohan holding 300 shares out of category II

failed to pay allotment and two calls and his shares were re issued @ Rs. 11 fully paid-up.

Pass necessary journal entries.