The authorized and issued share capital of Forward Ltd as at 31 May 20X0 was 150,000 equity shares of £1 each, fully paid. On 1 June 20X0, the authorized share capital was increased to £225,000 divided into equity shares of £1 each. On the same date 56,000 equity shares of £1 each were offered for sale at £1.25 per share payable as follows:

The lists were closed on 8 June 20X0 by which date applications had been received for 94,000 shares and it was decided to deal with these as follows:
1. To refuse allotment to one applicant for 10,000 shares and return the cash paid in respect of these shares.
2. To reduce proportionately all the other applications and to utilize the surplus received on these applications in part payment of amounts due on allotment.

The amounts payable on allotment were received on 23 June 20X0 with the exception of £50 due from one allottee of 500 shares, and these shares were declared forfeited on 1 August 20X0. The forfeited shares were reissued on 29 September 20X0 as fully paid at £1.15. The first and fina all due on 1 September 20X0 was duly paid by the remaining shareholders.

Required
a. Record the above transactions in the appropriate ledger accounts; and
b. Show how the balances on such accounts would appear in the company’s statement of financial position as on 31 October 20X0.

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On application On allotment (including the premium of 25p per share) On first and final call on 1 September 20X0 60p 40p 25p