Aarvi Ltd. 20,000 shares which were underwritten as follows: X: 12,000 shares; Y: 5,000 shares and Z: 3,000 shares. The underwriters made applications for firm underwriting as under: X: 1,600 shares; Y: 600 shares and Z:

Statement of Underwriters' Liability (Firm underwriting shares are treated as unmarked applications) Particulars X Y Z Total Gross Liability 12,000 5,000 3,000 20,000 Less: Marked Applications (2,000) (4,000) (1,000) (7,000) Balance 10,000 1,000 2,000 13000 Less: Unmarked application and firm underwriting in the ratio of gross liability (12:5:3) (4,320) (1,800) (1,080) (7,200) Balance 5,680 (800) 920 5,800 Credit of Y's over subscription to X & Z in the ratio of 12:3 (640) 800 (160) - Net Liability 5,040 - 760 5,800 Add: Firm underwriting 1600 600 2000 4,200 Total Liability 6,640 600 2,760 10,000