ABK Ltd. invited applications for issuing 1,50.000 equity shares of 10 each at a premium 12 per share. The amount was payable as follows of

On application - 2 per share,

On allotment - 5 per share (Including premium)

On first and final call - Balance

Applications for 2,20,000 shares were received Shares were allotted to all the applicants on prorate basis Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who had applied for 1000 shares failed to pay the amount due on allotment and first and final call Madhur who was allotted 2,400 shares failed to pay the first and final call Shares of both Manu and Madhur were forfeited. The forfeited shares were reissued at 9 per share as fully paid-up.