New era security and finance company Ltd underwrote part of a new issue of shares about to be made to the public by John Milton pic . The issue was of 400,000 1 naira ordinary shares payable 10k on application, , 40k on allotment and 50k on final call . The new era security and finance company underwrote 60% of the whole issue and applied firm for 80,000 shares which were duly allotted. The public applied for and were allotted 280,000 shares . New era deposited it's cheque alongside the underwriting letter for the application money. This cheque was cleared when the results of the issue became known. The commission was 1% cash and 1% in shares credited as fully paid and was duly discharge. The underwriter sold 24,000 shares when 50k paid for 11,500 Naira and paid the sums due on balance. After the final call , 44,276 shares were sold for 50,000 Naira. On new era security and finance Ltd's balance sheet date, John Milton plc share were quoted at 1.10 Naira each. You are required to write up the underwriting account in new era security and finance company's book carrying down the balance.
