M Limited issued 30,00,000 equity shares of ₹10 each at par. Out of these 12,00,000 shares were issued to the promoters and the balance offered to the public were underwritten by three Underwriters A, B and C in the Rati

Calculation of Liability of Underwriters A B C TOTAL Gross Liability 4,00,000 6,00,000 8,00,000 18,00,000 Less: Firm underwriting (60,000) (50,000) (70,000) 1,80,000 3,40,000 5,50,000 7,30,000 16,20,000 Less: Market Application received (3,00,000) (3,50,000) (5,00,000) (11,50,000) 40,000 2,00,000 2,30,000 4,70,000 Less: Unmarked Applications (in gross liability ratio 2:3:4) (86,222) (129,333) (1,72,445) (3,88,000) Balance (46,222) 70,667 57,555 82,000 Excess of A distributed among B & C in the ratio 3:4 (19,809) (26,413) Net Liability other than firm underwriting 50,858 31,142 82,000 Add: Firm underwriting 60,000 50,000 70,000 1,80,000 Total liability of underwriter including firm underwriting 60,000 1,00,858 1,01,142 2,62,000 Total liability in Amount @₹10 each 6,00,000 10,08,580 10,11,420 26,20,000