Question

A company incorporated on 1.1.2017 issued a Prospectus inviting applications for 5,00,000 Equity shares of Rs.10 each.
The whole issue was fully underwritten by four persons, viz.
P  : 2,00,000 Shares
Q  : 1,50,000 Shares

R : 1,00,000 Shares
S :  50,000 Shares

Applications were received for 4,50,000 shares of which marked applications were as fallows : 
p :  2,20,000 
Q :  90,000
R  : 1,10,000
S :  10,000
Find out the Liabilities of Individual underwriters.

Answer 1

The Net liability of the Underwriter is ascertained by giving credit to unmarked applications in the ratio of gross liability. 
Total Shares Applied - Marked Application = Unmarked Application 
∴  4,50,000 (-) 4,30,000 = 20,000 Shares .
Note : When the entire issue is underwritten by a single underwriter, there is no necessity to distinguish between marked and unmarked application and the liability for the underwriter would be 50,000 Shares (5,00,000 shares - 4,50,000 shares).