A limited company issued 100,000 Equity shares of 100 each. M, N, O and P underwrite the entire issue in the proportion of 30%, 30%, 20%, and 29% respectively in consideration of commission in cash at 4%. they also apply for firm share application as follows: M 3000 shares N 2000 shares O 2000 shares and P 3000 shares. Beside the firm applications the public apply for 60,000 shares of which marked applications are follows: M 10,000 shares N 6000 shares O 8000 shares and P 16,000 shares. Show the number of shares to be taken up by each of the underwriters assuming firm applications as marked and unmarked and commission payable to underwriters under each case.

A limited company issued 100,000 Equity shares of 100 each. M, N, O and P underwrite the entire issue in the proportion of 30%, 30%, 20%, and 29% respectively in consideration of commission in cash at 4%. they also apply for firm share application as follows: M 3000 shares N 2000 shares O 2000 shares and P 3000 shares. Beside the firm applications the public apply for 60,000 shares of which marked applications are follows: M 10,000 shares N 6000 shares O 8000 shares and P 16,000 shares. Show the number of shares to be taken up by each of the underwriters assuming firm applications as marked and unmarked and commission payable to underwriters under each case.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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