ipcc inter com holding..urgent??

the ques which came in ipcc nov attempt was a ca final question which cannot be done in first glance

but inter company holding is esay just the same only there are 2 adjustments to be done

1. while calculating purchase considration subtract no of shares held by new company in old company from its share capital. we do this because purchase considration is given to its share holders, since the new company has takenover the old company it is no longer its share holder and

2. write off such amount of investment while takeover of assets  and liabilities