Section B Short Answer Questions This section has 3 compulsory questions. Spend about 100 minutes on this section. Question 11: Company Formation and Share Capital [20 Marks] Spend about 40 minutes on this question. Share capital of Ba Ltd at 31 March 2022 was as follows: 300000 ordinary shares at an issue price of $4 each paid to $2.50, and 100000 preference shares at an issue price of $4 each paid to $2. At that date, a further call of $1.50 on ordinary shares and $2 on preference shares was made. During the 3 months to 30 June 2022 , all calls were duly received except those on 5000 preference shares which were forfeited as at 30 June 2022 . To bring capital back to the original amount of issued capital, the forfeited shares were offered to an investment company at a price of $3.50 per share paid to $4 and the transfer was eompleted on 30 September 2022. According to the company's constitution, shareholders' equity in forfeited shares must be refunded to them. On 31 October, the previous owner of forfeited shares received a refund cheque for the amount due, less selling costs of $720. Required: Show journal entries to implement the above transactions. [10 marks]