ABC issued a prospectus for the issue of 100,000 $5 shares on 1 January 2016. The prospectus specified that: $2.50 was payable on application Further $1.25 was payable on allotment The final $1.25 was payable at call On 31 January 2016, ABC received applications for 110 000 shares. ABC issued all of the 100,000 shares on a pro-rate basis and refunded the excess money to the shareholders. All the money owed on allotment was received by 1 March 2016. On 31 May 2016, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2016. At 30 June 2016, the call on 10,000 shares remained unpaid. On 1 July 2016 the directors of ABC decided to forfeit the 10,000 shares in respect of which the call of $1.25 was not made. The shares were cancelled and reissued as fully paid to $5 per share on payment of $4 per share. Costs of $1500 were incurred to reissue the shares. The balance of the forfeited shares account was returned to the shareholder