Read the following information carefully and answer the question.

A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by issue of 10% debentures of 100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of 100 each as collateral security. The rate of Interest on loan is 12% p.a.

The amount of Capital Reserve is :

₹20,000

The correct answer is option 4- ₹20,000.

Assets = ₹3,00,000
Liabilities = ₹10,000
Purchase consideration = ₹2,70,000

Assets = Liabilities + Purchase consideration  + Capital reserve
3,00,000 = 10,000 + 2,70,000 + Capital reserve
Capital reserve = 3,00,000 - 10,000 - 2,70,000
                       = ₹20,000