Illustration 2: Over Subscription Mercantile Company Limited has an authorized share capital of 500,000 all in ordinary shares of NI each On 1st January, 2006 the company offered for sale 300,000 ordinary shares at N1.50 each payable as follows: On applications NO.30k On allotment NO.60k(including the premium) On Ist Call NO.25k On 2nd Call NO.20k On Bed call NO.15 When the applications register were closed, applications had been received for 500,000 shares. The directors dealt with the situation as follows: Rejected 50,000 applications Gave full allotment to applications for 300,000 shares 3 Allotted the rest pro-rata, using excess applications monies to off-set part of the amount due allotment. All fees expected were received on allotment. On Ist call, three shareholders holding in total 10,000 shares did not pay their call fees. On 2nd call, fees on another 5,000 shares were not received. Before the 3rd call was duc, the directors decided to forfeit the holding of the 10,000 shares and these were immediately reissued for N1.10 each. This was equally paid for. All expected on 3rd call were received with the exception of fees on the 5,000 shares mentioned above. Required Show the ledger entries, the journals and an abridged statement of financial position 1 2