Kn Ltd. Invited applications for issuing 600000 equity shares of rs. 10 each at premium of rs. 3 per shares. On application and allotment - Rs. 3 per share First call- Rs. 4 per share Second and final call- balance(including premium) Application for 800000 shares were received application for 50000 shares were rejected and the application money was refunded. Shares were alloted to the remaining application. Category 1: those who had applied for 400000 shares were alloted 300000 shares on pro rata basis. Category 2: the remaining applicants were alloted the remaining shares on pro rata basis Excess application money received with applications was adjusted towards sums due on first call. Rakesh to whom 6000 shares were alloted failed to pay the 1st call money. Rakesh belonged to category 1. His shares were forfeited. The forfeited shares were received issued at 13 fully paid up. The second call was made afterwards and was dully received