Applications were invited by the directors of Grobigg Ltd for 15,000 of its equity shares at ₹ 115 per share payable as follows:
(a) On application on 1st April, 2017 (including premium of ₹ 15 per share) ₹ 75;
(b) On allotment on 30th April, 2017 ₹ 20; and
(c) On first & final call on 31st May 2017 ₹ 20. Applications were received for 18,000 shares and it was decided to deal with these as follows:
1. To refuse allotment on applicants for 800 shares.
2. To give full allotment to applicants for 2,200 shares.
3. To allot the remainder of the available shares pro-rata among the other applicants.
4. To utilize the surplus received on applications in part payment of amounts due on allotment. An applicant, to whom 400 shares had been allotted, failed to pay the amount due on the first and final call and his shares were declared forfeited on 31st July 2017.These share were re-issued on 3rd September, 2017 as fully paid at ₹ 90 per share. Pass Journal entries including cash items.