A company with registered capital (1,00,000 Equity Shares of ₹50 each) was incorporated. What will be the amount of underwriting commission if Underwriting Commission was payable @ 5% of Nominal (Face) Value of Shares, by issue of 60,000 Equity Shares at par?

₹1,50,000

The correct answer is option 3- ₹1,50,000.

Underwriting commission = 50 X 5/100
                                        = ₹2.5

Amount of Underwriting commission = 60,000 X 2.5
                                                         = ₹1,50,000