On 1st April 2008, BATU Ltd issued 50,000 ordinary shares

On 1st April 2008, BATU Ltd issued 50,000 ordinary shares of Shs. 1,000 each at a premium of Shs. 200 per share payable as follows:

 Application Shs. 200 per share

 Allotment (Including premium) Shs. 500 per share

 Call (four months after allotment) Shs. 500 per share

Applications were received for 90000 shares. On 1st June 2008 allotment was made as follows:

 Applications for 15,000 shares were rejected and a refund made to the applicants.

 45,000 applications were accepted in full.

 Allotment was made to the remainder pro rata.

 Excess monies from applicants were utilized towards allotment and call monies due for them.

REQUIRED

a) General ledger entries to record the above transactions

b) Explain with calculations how the amounts originally received in the pro rata allotment were utilized.