New Industries Limited issued a prospects, inviting applications for 1,00,000 shares of Rs. 10 each at a premium of Rs. 5 per share, payable as follows : On Application Rs. 4.50 , On Allotment Rs. 7.50 (including Premium), On Ist Call Rs. 2.00 and On Final Call Rs. 1.00. Applications were recieved for 1,25,000 shares and allotment was made pro-rata to the applicants of 1,20,000 shares, the remaining applications being refused. Money received in excess on the application was adjusted towards the amount due on allotment. D, to whom 2,000 shares were allotted , fasiled to pay allotment money and on his failure to pay the first call, his shares were forfeited. M, the holder of 3,000 shares, failed to pay the to calls, and so his shares were also forfeited. All these shares were sold to R, credited as fully paid for Rs. 8 per share. Pass Cash Book and journal entries (with narrations) to record the above issue of shares by the company.
