M Limited has an authorised share capital of $£ 1,500,000$ divided into $1,500,000$ ordinary shares of $£ 1$ each. The issued share capital at 31 March 2013 was $£ 500,000$ which was fully paid, and had been issued at par. On 1 April 2013, the directors, in accordance with the company's Articles, decided to increase the share capital of the company by offering a further 500,000 ordinary shares of $£ 1$ each at a price of $£ 1.60$ per share, payable as follows:

On application, including the premium On allotment On first and final call on 3 August 2013 $£ 0.85$ per share

$£ 0.25$ per share

$£ 0.50$ per share On 13 April 2013, 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 2013, the unsuccessful applicants being repaid their cash on this date. The balance of the allotment money was received in full by 15 May 2013.

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 2013, after giving the required notice. The forfeited shares were reissued on 30 September 2013 to another member at $£ 0.90$ per share.

You are required to write up the ledger accounts necessary to record these transactions in the books of M Limited.

\section*{(Chartered Institute of Management Accountants)}