Underwriting of Shares & Debentures One Shot | Full Revision | CMA Inter Group 2

Underwriting of Shares & Debentures One Shot Revision for CMA Inter Group 2 — Paper 10 Corporate Accounting. This video covers ALL concepts of Underwriting from scratch — underwriting commission, marked and unmarked applications, firm underwriting, and journal entries — along with three fully solved important questions, so you can revise the entire chapter in one sitting before your exam. 📚 What you'll learn in this One Shot: ✔ Meaning of Underwriting and why companies use underwriters ✔ Underwriting Commission limits — 5% for shares, 2.5% for debentures ✔ Format for calculating Gross Liability and Net Liability of underwriters ✔ Marked Applications vs Unmarked Applications — meaning and treatment ✔ Two methods of apportioning Unmarked Applications — Gross Liability ratio vs Gross Liability Less Marked ratio ✔ Handling negative Net Liability — surplus transfer between underwriters ✔ Journal entries for underwriting commission and amount payable/receivable ✔ Firm Underwriting — meaning and purpose ✔ Firm Underwriting when Benefit is Given vs when Benefit is Not Given ✔ The golden rule when a question is silent on firm underwriting benefit ✔ Three fully solved practical questions covering all scenarios ✔ Common mistakes students make in this chapter and how to avoid them 👨‍🏫 Taught by: Abhimanyyu Agarrwal 📖 Course: CMA Intermediate Group 2 📄 Paper: Paper 10 – Corporate Accounting 🙋 Frequently Asked Questions: Q1. What is underwriting of shares and debentures? A. Underwriting is a contractual arrangement where a company issues its shares or debentures with the help of an underwriter, who promises to purchase the unsubscribed portion of the issue in exchange for a commission. Q2. What is the maximum underwriting commission allowed? A. As per the Companies Act, underwriting commission cannot exceed 5% of the issue price for shares and 2.5% of the issue price for debentures. Q3. What is the difference between marked and unmarked applications? A. Marked applications carry the stamp of a specific underwriter and are credited to that underwriter directly, while unmarked applications carry no stamp and are apportioned among underwriters, usually in the ratio of their gross liability. Q4. What is Firm Underwriting? A. Firm Underwriting refers to shares or debentures that an underwriter reserves for themselves in advance, separate from the public issue, mainly to build public confidence in the issue. Q5. How is Firm Underwriting treated if the question doesn't specify benefit given or not given? A. If a question is silent on this point, it should always be assumed that the benefit of firm underwriting is given to the underwriter, meaning it is treated the same way as a marked application. Q6. Is Underwriting an important chapter for CMA Inter Group 2? A. Yes, this is a scoring, formula-based chapter in CMA Inter Paper 10 Corporate Accounting, and questions on calculating underwriter liability appear regularly. ⏱ Timestamps: 0:00 Introduction — What is Underwriting? 1:38 Underwriting Commission — Limits 3:00 Format for Calculating Underwriter's Liability 4:10 Handling Unmarked Applications — Two Methods 4:52 Negative Net Liability — Surplus Transfer Rule 6:22 Sum 1: M Ltd — Full Solution 21:53 Journal Entries — Commission & Payables 26:19 Firm Underwriting — Meaning & Purpose 27:41 Firm Underwriting — Benefit Given vs Not Given 29:58 Sum 2: SDF Ltd — Full Solution 40:07 Concept: Benefit NOT Given 44:59 Rule When Question is Silent 45:20 Sum 3: P Ltd — Full Solution (Both Cases) 1:02:07 Final Total Liability & Closing 🔔 Subscribe for more One Shot Revisions of CMA Inter Group 1 & Group 2 — Financial Accounting, Corporate Accounting & more, only on this channel! 📲 Follow for updates: 📚 Join Our CMA Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: 🎁 EXCLUSIVE GIFT FOR YOU: Stop making messy notes! Download my premium, exam-ready Handwritten Notes for this chapter completely FREE here: #CMAInter #Underwriting #CorporateAccounting