(1) Computation of marked application excluding shares underwritten firm: Sun = 3,500 - 1,000 = 2,500 Moon = 1,400 - 500 = 900 Star = 1,600 - 500 = 1,100 948 (ii) Computation of unmarked applications: Total number of shares subscribed including firm underwriting 9,000 Less: Marked application including firm underwriting (3,500 + 1,400 + 1,600) 6,500 Unmarked applications 2,500 Ajoint stock company resolved to issue 10 lakh equity shares of Rs. 10 each at a premium of 2.33 Re. 1 per share. One lakh of these shares were taken up by the directors of the company their relatives, associates and friends, the entire amount being received forthwith. The remaining shares were offered to the public the entire amount being asked for with applications. The issue was underwritten by X, Y and Z for a commission @2% of the issue price, 65% of the issue was underwritten by X, while ? Ys and Zs shares were 25% and 10% respectively. Their firm underwriting was as follows: X: 30,000 shares, Y: 20,000 shares and Z: 10,000 shares. The underwriters were to submit unmarked applications for shares underwritten firm with full application money along with members of the general public. Marked applications were as follows: X: 1,19,500 shares Y: 57,500 shares and Z: 10,500 shares Unmarked applications totalled 7,00,000 shares Accounts with the underwriters were promptly settled. You are required to () Prepare a statement calculating underwriters' liability for shares other than shares underwritten firm. (ii) Pass journal entries for all the transactions including cash transactions. (CA Inter, May, 2001)