Question

Radisun Ltd. issued 40,000 Shares which were underwritten as :
P :  24,000     Shares
Q  :  10,000   Shares
R :    6,000     Shares 
The underwriters made appiications for firm underwriting as under :
P:  3,200   Shares
Q: 1,200   Shares
R:  4,000   Shares
The total subscriptions excluding Firm underwriting '(including marked applications) were 20,000 Shares.
The marked applications were :
P:  4,000   Shares 
Q:  8,000   Shares 
R : 2,000   Shares
Prepare a Statement showing the Net Liabiiity of Underwriters.

Answer 1

Statement of Underwriter's Liability 
(Firm Underwriting Shares are treated as Unmarked Applications) 

Particulars	P	Q	R	Total
Less : Total Unmarked  Application in the Ratio of Gross Liability (12 : 5 : 3)	8,640	3,600	2,160	2,160
Balance	11,360	(-1,600)	1,840	11,600
Credit of Q's over- subscription to P & R in the ratio 12 : 3	(1 ,280)	( + 1,600)	320
Net Liability	10,080		1,520	11,600
Add: Firm Underwriting	3,200	1,200	4,000	8,400
Total Liability	13,280	1,200	5,520	20,000