The Company had appointed four underwriters. The entire issue was underwritten as follows: Underwriter % share in underwriting P 35% Q 25% R 20% S 20% The underwriting commission is paid @ 1.5%. Calculate the underwritin

CS Executive · Corporate Accounting and Financial Management · PYQS · December 2025
The Company had appointed four underwriters. The entire issue was underwritten as follows: Underwriter % share in underwriting P 35% Q 25% R 20% S 20% The underwriting commission is paid @ 1.5%. Calculate the underwriting commission for each underwriter.

Answer & Explanation:

Calculation of Underwriting Commission Number of shares offered 50,000 Issue Price 120 Total issue size ₹ 60,00,000 Commission paid 1.50% Commission ₹ 90,000 Underwriter % Share in underwriting Commission share Amount in ₹ P 35% 31,500 Q 25% 22,500 R 20% 18,000 S 20% 18,000

Topics: Corporate Accounting

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