Greenstreet Ltd Owns 100% of the Issued Ordinary Share Capital

Multiple Choice

Greenstreet Ltd owns 100% of the issued ordinary share capital of Bogart Ltd.During the year ended 31 March 20X1, Greenstreet Ltd provides cleaning services to Bogart Ltd for $4 000 000.The cost at fair value of these services was $1 000 000.Which consolidation elimination entry is required for this transaction for the year ended 31 March 20X1.

A)
$\begin{array}{lcc}\text { Accounts } & \text { Debit \$ } & \text { Credit \$\$ } \\\text { Cleaning services revenue } & 4000000 & \\\text { Cleaning services expense } & & 4000000\end{array}$

B)
$\begin{array}{lcc}\text { Accounts } & \text { Debit \$ } & \text { Credit \$\$ } \\\text { Cleaning services revenue } & 4000000 & \\\text { Cleaning services expense } & & 4000000\end{array}$ .

C)
$\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Cleaning services revenue } & 3000000 & \\\text { Cleaning services expense } & & 3000000\end{array}$ .
D) No elimination entry is required because there is no inventory on hand