Assignment .2

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 5

ដ សកលវិទ្យាល័យសេដ្ឋកិច្ច និង ហិរញ្ញវត្ថុ

ស UNIVERSITY OF ECONOMIC AND FINANACE

ASSIGAMENT 2
Subject : Corporate Accounting

Professor : Phirum Hem

Group Member

1.PON KI 2.CHOM CHUN E


1. Underwriting is according to the Institute of Company Secretaries of
India “Underwriting may be defined as entered into by the company
with the person or institutions, called underwriters, who undertake
to take up the whole or portion of such offered shares or debentures
as may not be subscribed for by the public, in consideration of
remuneration called underwriting commission”.

2. What is meant by Marked Applications?


Marked Applications is the application form, received by the
company from the public, duly filled and bearing the ‘stamp’ or
‘marking’ of a particular underwriter, are called marked application.
they were issued to the public by the underwriter or his agent
originally, the marked applications are deemed to be received through
underwriters ’even if they are directly by the applicant company.

3. What do you mean by Unmarked Applications?


Unmarked Applications is the application forms that are duly filed and
received by the company, from public, do not bear any ‘stamp’ or
‘marked’, are called unmarked applications. They were originally issued
by the company to the public directly and are termed as ‘direct
applications.

4. Explain the term Firm Underwriting.


Firm Underwriting is the Underwriters may agree to accept a
specific portion (referred to as a foreclosure) in excess of the collateral.
In this case, the guarantor has to fill in the blanks with the same
amount of rice as the rest of the group.
The form underlined by the underwriter is referred to as the firm
underwriting application. Recognition of the form of asset-free asset
receivables obtained through repurchase agreements. This
information is relevant and necessary to determine the liability of each
guarantor.

5. When the entire issue is underwritten by only one person, his


liability will be equal to?
When the entire issue is underwritten by one person, he will be
given the full credit. As such, his liability will be just equal to the
number of shares underwritten minus the number of shares applied
for; and, if the shares are fully or over-subscribed, there will be no
liability.

6.Complete underwriting means?


Complete underwriting is one under which the whole of the
issues of share or debenture of a company is underwritten by one or
more underwriters. Under such agreement, underwriter underwrites
full amount of shares/debentures issued by companies. These
securities are underwritten either by single underwriter or by many
underwriters who agrees to assume the risk to specified amount.

7. If a part of the issue of shares or debenture is underwritten, what


is term of it?
If a part of the issues of share or debenture is underwritten, the
term of it is Partial Underwriting.
8. The application received directly by the company which bears
the stamp of the underwriters are called ‘marked application’. True
or false?
It is True.

9. The underwriters may be an individual, partnership firm,


banks financial institutions or joint stock companies. True or
false?
It is True.
1. Determine the liability of the underwriters

Particulars A B C Total
Gross liability 50,000 30,000 20,000 100,000
Less: Market applications 20,000 15,000 20,000 55,000
30,000 35,000 - 45,000
Less: Unmarked application

Gross liability 15,000 9,000 6,000 30,000


15,000 6,000 (6,000) 15,000
C’s surplus transferred A and B
Gross liability Ratio 3,750 2,250 6,000 -
Net liability 11,250 3,750 15,000
2. Pass the Journal Entries

Account Debit Credit


- Bank 90,000
Share Capital 90,000
- Bank 75,200
Discount on issue 4,800
Debentures 80,000
- Wisdom & Co 10,000
Share Capital 10,000
- Wisdom & Co 18,880
Discounts on issue 1,200
Share Capital 20,000
- Commission on share 4,000
Commission on Debentures 1,880
Wisdom & Co 5,880
- Bank 22,920
Wisdom & Co 22,920

You might also like