Question - Tewantin Ltd makes an offer to the public for investor to subscribe for 10 million shares. The shares are issued at $2.00 per share. Applications for shares close on 15 July 2015, with $1.00 being paid on application and a further $1.00 being payable within one month of allotment.
By 15 July 2015 applications have been received for 11 million shares, and it is decided that all subscribers will receive shares on a pro rata basis, with an excess paid on application to be offset against the amount due on allotment. The shares are allotted on 20 July 2015.
Subsequently, holders of one million shares fail to make their payments due on allotment by 20 August 2015. On 31 August the one million shares are forfeited and auctioned as fully paid. An amount of $1.50 is received for each share sold.
Provide the journal entries to account for the above events.