New Ltd. issued 1,00,000 shares which were underwritten as under: Number of shares underwritten Applications for firm underwriting Marked applications Underwriter A 60,000 8,000 10,000 Underwriter B 25,000 3,000 20,000 U

Answer 3(a) Calculation of unmarked applications Shares Total Subscriptions 50,000 Less: Marked Applications 35,000 15,000 Firm Underwriting 21,000 36,000 Statement of Underwriters Liability Particulars A B C Total Gross Liability 60,000 25,000 15,000 1,00,000 Less: Marked Applications 10,000 20,000 5,000 35,000 Balance 50,000 5,000 10,000 65,000 Less: Unmarked applications (Distributed in ratio of gross liability) 21,600 9,000 5,400 36,000 Balance 28,400 -4,000 4,600 29,000 Credit of B's Subscription in 60:15 ratio -3,200 4000 -800 - Net Liability 25,200 - 3,800 29,000 Add: Firm Underwriting 8,000 3,000 10,000 21,000 Total Liability 33,200 3,000 13,800 50,000