Corporate accounting help!!!

1148 views 3 replies

I need d solution fr dis problem.... plzz

santhosh ltd. was formed with a capital of Rs.20,00,000 divided into 2,00,000 equity shares of Rs.10 each. All shares were issued to public for subscripttion. The issue was underwritten as follows:

 

Alok: 80,000 shares

Benny:60,000 shares

Chopra:60,000 shares

 

Marked applications were receiver in favour of Alok for 32,000 shares. benny for 58,000 shares and Chopra for 42,000 shares. Applications for 30,000 shares were not marked.

Prepare statement showing net liability of each underwriter.

Replies (3)

 


                                                                 Alok               Benny             Chopra

Underwritten                                   80000            60000                60000

Marked applications                    (32000)          (58000)          ( 42000)

Balance                                             48000            2000                18000

Unmarked appications               (12000 )            (9000  )             ( 9000)

(ratio 4:3:3)


balance                                           36000              (7000)                   9000

Excess of Benny                         ( 4000)                                           (3000)

 redistributed

 to Alok and Benny in the ratio 4:3)


Net liability                                  32000                        0                    6000

agree with sunshine.

thnx....


CCI Pro

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