Underwriter Ltd. issued 1,25,000 shares which were underwritten as follows : P : 40%, Q : 40% and R : 20% Details of the marked application are : P : 40,000 shares, Q : 32,000 shares and R : 8,000 shares. Unmarked applic

CS Executive · Corporate and Management Accounting · PYQS · June 2023
Underwriter Ltd. issued 1,25,000 shares which were underwritten as follows : P : 40%, Q : 40% and R : 20% Details of the marked application are : P : 40,000 shares, Q : 32,000 shares and R : 8,000 shares. Unmarked applications are for 20,000 shares. The net liability of individual underwriters P, Q and R is:
(A) 50,000; 50,000; 25,000
(B) 40,000; 32,000; 8,000
(C) 10,000; 18,000; 17,000
(D) 2,000; 10,000; 13,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Corporate Accounting

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