Alfa Limited invited applications for 4,00,000 of its equity shares of Rs. 10 each on th
Channel: Doubtnut
Date: 2020-04-26

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.