Alfa Limited invited applications for 4,00,000 of its equity shares of Rs. 10 each on the following terms :
`{:("Payable on application","Rs. 5 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 allot in full to applicants for 80,000 shares,
(c ) to allot the balance of hte 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 allotment and on the call, and his 400 shares were forfeited. The shares were reissued @ Rs. 9 per share. Show the journl and cash book entries necessary to record the foregoing data.