C Ltd. has acquired 50,000 Shares of Rs.10 each in A Ltd. constituting 62.5% of the latter's Equity. On the same day, Arghya Ltd. had also acquired 10,000 8% Preference Shares of Rs 20 each The balances in Reserves of A Ltd. are Capital Reserve Rs.60,000 (Fully Pre Acquisition) Securities Premium Rs.15,000 (Fully Post Acquisition) General Reserve Rs 78,000 (30% Pre Acquisition 20% Post Acquisition) Profit and Loss A/c Rs.90,000 (50% Pre Acquisition 50% Post Acquisition) Ascertain the cast of control if total cost of investment is (2) Rs.750.000; (b) R$8,50,000; and (c) R$ 10,00,000 a41 Post Acquisition Revenue Profit 1. Determination of Capital Profit Total Reserve Account Pre Acquisition Capital Profit Capital Reserve 60,000 60,000 Securities Premium 15,000 General Reserve 78,000 23,400 (30% x Rs.78,000) Profit and Loss Account 90,000 45,000 (50% x Rs.90,000) Total Rs. 2,43,000 Rs. 1,28,400 Share of C Ltd. (62.5% of above) Rs.50,250 2. Cost of Control Particulars Rs. Cost of Investment (A) 7,50,000 Nominal Value of Equity Capital (50,000 x Rs 10) 5,00,000 Nominal Value of Preference Capital Share in (20,000 x Rs. 20) 2,00,000 Capital Profit 80,250 Total of Above (B) 7,80,250 Goodwill (if AB) (A-B) Capital Reserve (if B