Answer to Question #88832 in Accounting for Serisha

Question

On 13 April 2017, applications had been received for 750 000 shares and it was decided to allot the shares to applicants for 625 000 shares, on the basis of four shares for every five shares for which applications had been received. The balance of the money received on application was to be applied to the amounts due on allotment. The shares were allotted on 1 May 2017, the unsuccessful applicants being repaid their cash on this date. The balance of the allotment money was received in full by 15 May 2017.
With the exception of one member who failed to pay the call on the 5 000 shares allotted to him, the remainder of the call was paid in full within two weeks of the call being made. The directors resolved to forfeit these shares on 1 September 2017, after giving the required notice. The forfeited shares were reissued on 30 September 2017 to another member at R0.90 per share.
REQUIRED:
Write up the ledger accounts necessary to record these transactions in the books of M Limited.