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. Prepare the following Accounts: Application & Allotment Account Preference Share Capital Account Share Premium Account Bank Account iv. V. Vi. First & Final Call Account vii. Investment: Own Share Account B. Explain the following terms: (2 marks) (3 marks) (2 marks) (3 marks) (2.5 marks) Forfeiture Redemption of shares Earnings per Share (2.5 marks) (2.5 marks) (2.5 marks)