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Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms :

Payable on applicationRs.per share
payable on allotment Rs.3 per share
payable on first and final callRs. 2 per share

Applications for 5,00,000 shares were received. It was decided : 

(a) to refuse allotment to the applicants for 20,000 shares; 

(b) to allow in full to applicants for 80,000 shares; 

(c) to allow the balance of the available shares’ pro-rata among the other applicants; and 

(d) to utilise excess application money in part as payment of allotment money. One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on the allotment and on the call, and his 400 shares were forfeited. 

The shares were reissued @ Rs.9 per share. Show the journal and prepare Cashbook to record the above.

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