X Ltd. invited applications for issuing 15,000 8% Debentures of ₹100 each. The amount was payable as follows:
On Application……….₹ 20 per Debenture
On Allotment………. Balance
Applications for 30,000 Debentures were received. Applications for 5,000 Debentures were rejected and the application money was refunded to the applicants. Prorata allotment was made to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. The remaining allotment money was duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd.