Question

Bharat Movers Ltd., issued 30,000 6% Debentures of 100 each. 60% of the issue was underwritten by Mr . Shah. Applications for 28,000 Debentures were received by the Company. 
Determine. the Liability of Mr. Shah.

Answer 1

Solution : Gross Liability of Mr. Shah being 60% of 30,000 Debentures, 
`60/100xx30,000=18,000`

Less : Marked Applications assumed 60% of 
`28,000(60/100xx28,000)=16,800`
Net Liability of Mr. Shah 1,200 Debentures