Question 3 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. ii. iv. V. Bank Account vi. Prepare the following Accounts: Application & Allotment Account Preference Share Capital Account Share Premium Account First & Final Call Account vii. Investment: Own Share Account B. i. Forfeiture ii. Explain the following terms: Redemption of shares iii. Earnings per Share