Andronico Limited Provided an Advance of $500 000 to Its

Multiple Choice

Andronico Limited provided an advance of $500 000 to its subsidiary Galactico Limited.On consolidation the following adjustment is needed in relation to this intragroup advance:

A) no adjustment needed
B) DR Advances to subsidiaries $500 000 CR Advances from parent $500 000
C) DR Advances from parent $500 000 CR Advances to subsidiaries $500 000
D) DR Advances from parent $500 000 CR Cash $500 000