Particulars Gross Liability Less: Firm Underwriting Less: Unmarked Forms Less: Marked Forms (excluding Firm Underwriting) Seth Shetty 5,00,000 5,00,000 20.000 20.000 4,80,000 4,80,000 40.000 40,000 4,40,000 4,40,000 5,00,000 3,40,000 60,000 1,00,000 60,000 60,000 40,000 20,000 20,000 20,000 60,000 Less: Benefit of Seth's surplus to Shetty Add: Firm Underw No. of shares to be taken by Underwriters 951 Scorpio Ltd. came out with an issue of 45,00,000 equity shares of Rs. 10 each at a 2.40 premium of Rs. 2 per share. The promoters took 20% of the issue and the balance was offered to the public. The issue was equally underwritten by A & Co.; B & Co. and C & Co.: Each underwriter took firm underwriting of 1,00,000 shares each. Subscriptions for 31,00,000 equity shares were received with market forms for the underwriters as given below: A & Co. 7,25,000 shares B & Co. 8,40,000 shares C& Co. 13,10,000 shares Total 28,75,000 shares The underwriters are eligible for a commission of 5% on face value of shares. The entire amount towards shares subscription has to be paid alongwide application. You are required to: (a) Compute the underwriters liability (number of shares). (b) Compute the amounts payable or due to underwriters, and (c) Pass necessary journal entries in the books of Scorpio Ltd. relating to underwriting