Question

Jackpot Ltd., issued 50,000 Equity shares of which only 60% was underwritten by X. Applications for 45,000 Shares were received in all out of which applications for 26,000 Shares were marked. 

Determine the Liability of X.

Answer 1

Gross Liability of X, 
being 60% of 50,000 Shares, i.e:  `60/100xx50,000= 30,000 \text{shares}`
Less : Marked Applications = 26,000 Shares 
Net Liability of X = 4,000 Shares 
Note : (1) If the marked applications were for 30,000 Shares or" more, X would have had no liability at all.