Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms :
|Payable on application||Rs.per share|
|payable on allotment ||Rs.3 per share|
|payable on first and final call||Rs. 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.