The authorised and issued share capital of Cosy Fires Ltd was £75,000 divided into 75,000 ordinary shares of £1 each, fully paid. On 2 January 20X7, the authorised capital was increased by a further 85,000 ordinary shares of £1 each to £160,000. On the same date 40,000 ordinary shares of £1 each were offered to the public at £1.25 per share payable as to £0.60 on application (including the premium), £0.35 on allotment and £0.30 on 6 April 20X7.

The lists were closed on 10 January 20X7, and by that date applications for 65,000 shares had been received. Applications for 5,000 shares received no allotment and the cash paid in respect of such shares was returned. All shares were then allocated to the remaining applicants pro rata to their original applications, the balance of the monies received on applications being applied to the amounts due on allotment.

The balances due on allotment were received on 31 January 20X7, with the exception of one allottee of 500 shares and these were declared forfeited on 4 April 20X7. These shares were reissued as fully paid on 2 May 20X7, at £1.10 per share. The call due on 6 April 20X7 was duly paid by the other shareholders.

You are required:

(a) To record the above-mentioned transactions in the appropriate ledger accounts; and

(b) To show how the balances on such accounts should appear in the company’s balance sheet as on 31 May 20X7.