Visva Ltd. issued 50,000 shares of ₹ 10 each. The entire issue was underwritten by Ragu. If the net liability (including firm underwriting) and firm underwriting are respectively 20,000 and 5,000 shares, the applications
CS Executive · Corporate and Management Accounting · PYQS · December 2023
Visva Ltd. issued 50,000 shares of ₹ 10 each. The entire issue was underwritten by Ragu. If the net liability (including firm underwriting) and firm underwriting are respectively 20,000 and 5,000 shares, the applications received are:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A), (D). Official source note: Correct option is D i.e. 35000 (net liability of 20000 is including of firm underwriting. So, effectively ap plication were received for 35000 including firm underwriting (50000 -15000). However, Option A may also be considered as correct as application were received from outside is 30000 excluding firm underwriting.
Topics: Corporate Accounting
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