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