It implies that
1. In case purchase consideration < share capital of transferor company (i.e. capital profit), it is to be credited to Capital Reserve.
2. In case purchase consideration > share capital of transferor company (i.e. capital loss), it is to be debited to Capital Reserve. However, if capital reserve is insufficient, the loss could be adjusted against revenue reserves like general reserve, P&L A/c.
plz tell if it is right???