Underwriters a/c is ____ by commission due (a)credited (b) debited (c)no effected in the accounts (d)both (a) and (b)
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it will be credited as it is a liability for us because commission is due.
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a. credited
The compensation an underwriter receives from investors for placing a new issue is known as underwriting commission. The fee paid by the issuer corporation to an underwriting firm or individual to subscribe to a security issue. The corporation suffers a capital loss as a result of the underwriting commission paid. This will appear under the heading on the asset side of the Balance Sheet. 'Miscellaneous Expenditure' is a term that can be used to describe a wide range of expenses. It will be credited because commission is owed and it is a liability for us.
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