a) Describe the purpose of each of the ledger accounts: Application and Allotment; that are used to record the issue of shares. (2 marks) b) On 1 July 2020, Red Ltd was registered and offered 60,000 ordinary shares to the public at an issue price of $7, payable as follows: $5 on application (due 13 August) $2 on final call By 13 August, applications had been received for 60,000 ordinary shares. The company issued 60,000 shares on 15 September. The call was made on 5 October with money due by 15 October. All money was received on the due date except for the holders of 5,000 shares who failed to meet the final call. On 20 October, as provided for in the constitution, the directors decided to forfeit these shares. They were reissued, on 25 october, for $6 in cash. Further, on 28 October, there was an issue cost of $3,000 that was paid in cash, as well the the balance of the Forfeited Shares account being returned to the former shareholder on 31 Oct 2020. Fi Required: Prepare the journal entries to record the transactions of Red Ltd from when the call was made on 5th October until 31 October 2020 (Show all workings and dates, narrations are NOT required).(10 marks)