2.Ram Ltd. having a nominal capital of Rs. 10,00,000, divided into shares of Rs. 100 each. It offered for public subscription 7,000 shares payable as ? 20 on application; ? 30 on allotment and the balance in two calls of ? 25 each.
Applications were received by the company for 12,000 shares. Applications for 7,000 shares were accepted and the application money was refunded.
Amounts were duly received. Record necessary Journal entries.