Journal entries ( Underwriting)

2.8.1 Journal Entries
2.8.1.1 In the Books of the Company
Step 1: For Shares Subscribed for (by the public):

   Bank A/c

Dr. …

      To Share Capital A/c

….

   (Shares Allotted to the Public)

Step 2: For Underwriters Liability:

   Underwriter’s A/c

Dr. …

      To Share Capital A/c

….

   (Shares to be Taken by the Underwriters)

Step 3: For Underwriting Commission:

   Underwriting Commission A/c

Dr. …

      To Underwriter’s A/c

….

   (Underwriting Commissions Payable)

Step 4: For Net Amount Receivable from Underwriters:

   Bank A/c

Dr. …

      To Underwriter’s A/c

….

   (Amount Received in Settlement from the Underwriters)