Reference no: EM131536672

Question: Audrey Limited invited applications for 200,000 of its £1 Ordinary Shares

Applications for 250,000 shares were received. It was decided:

(a) to refuse allotment to the applicants for 10,000 shares;

(b) to allot in full to the applicants for 40,000 shares;

(c) to allot the balance of the available shares pro rata among the other applicants;

(d) to utilise excess application money in part payment of allotment money.

One applicant to whom shares had been allotted in full did not pay the amount due on call and his 200 shares were forfeited. The shares were re-issued on 31st October, at 18s. Show the Journal and Cash Book entries necessary to record the foregoing.