Amalgamation

Share capital is worth of a company. Anything paid below the worth of a co is a profit / surplus for you. hence such diff is capitalised by transfering it to R&S ( jus like surplus in p&l is transfered to r&s). And anything paid more than the worth of the company is a loss. hence we reduce that amount from reserves or create goodwill

Tnq for ur reply, but can u clarify that we do adjust from whose reserves transferor or transferee?