Issue of shares JB Milks Ltd invited applications for 300,000 5% Preference shares of $1 each at $1.40, payable: 40% on application, 80% on allotment (including premium) 20% on first and final call All the allotment money was received but a holder of 10,000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All forfeited shares were subsequently re-issued as fully paid shares at 80 cents each. Required:

A. i. Prepare the following Accounts: ii. Application & Allotment Account (2 marks)

iii. Preference Share Capital Account (3 marks) iv. Share Premium Account (2 marks)

v. Bank Account (3 marks)

vi. First & Final Call Account (2.5 marks)

vii. Investment: Own Share Account B. Explain the following terms:

i. Forfeiture (2.5 marks)

ii. Redemption of shares (2.5 marks)

iii. Earnings per Share (2.5 marks)