On Feburary 1, 2018, the Directors of Alpha Limited issued 5,00,000 Equity Shares of Rs. 10 each at Rs. 12 per share, payable Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on 1st May, 2018. The lists closed on Feburary 10, 2018 by which date applications for 7,00,000 shares were received. Of the cash received, Rs. 4,00,000 was returned and Rs. 6,00,000 was applied to the amount due on allotment, the balance of which was paid on Feburary 16, 2018. All shareholders paid the call due on May 1, 2018 with the exception of one allottee of 500 shares. These shares were forfeited on September 29, 2018 and reissued as fully paid at Rs. 8 per share on November 1, 2018. Record journal entries in the books of Alpha Limited using a combined account of application and allotment.

Explanation