Profit or Loss Prior to Incorporation

Question No. 1 A Company was incorporated on 30th April to acquire a business of a private firm as from 1st January. The Company closes its account books on 31st December. The Gross Profit for the whole period was found out to be $120,000. The sales for the month of August were 3 times of …

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Underwriting of Shares Questions and Answers

Underwriting of Shares Question No. 1 (Partial Underwriting) A Company issued 100,000 shares of $100 each. These shares were underwritten as follows: X—-30,000 shares and Y—– 50,000 shares. The public applied for 70,000 shares. Determine the liability of X, Y and the Company. Answer Marked applications are not given in the problem. Therefore, applications be …

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