Good Limited provided a loan of $1,300,000 to its subsidiary Catch Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan? DR Loan payable to parent $1,300,000 CR Cash $1,300,000 No adjustment needed. DR Loan receivable from subsidiaries $1,300,000 CR Loan payable to parent $1,300,000 DR Loan payable from parent $1,300,000 CR Loan receivable from subsidiaries $1,300,000
Good Limited provided a loan of $1,300,000 to its subsidiary Catch Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan? DR Loan payable to parent $1,300,000 CR Cash $1,300,000 No adjustment needed. DR Loan receivable from subsidiaries $1,300,000 CR Loan payable to parent $1,300,000 DR Loan payable from parent $1,300,000 CR Loan receivable from subsidiaries $1,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Good Limited provided a loan of $1,300,000 to its subsidiary Catch Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan?
DR Loan payable to parent $1,300,000 |
||
No adjustment needed. |
||
DR Loan receivable from subsidiaries $1,300,000 |
||
DR Loan payable from parent $1,300,000 |
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