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Discuss adjustments is needed in relation

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Chancellor Limited provided a loan of $1 500 000 to its subsidiary Park Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan?

I. No adjustment needed

II. Dr Loan receivable from subsidiaries $1 500 000

Cr Loan payable to parent $1 500 000

III. Dr Loan payable from parent $1 500 000

Cr Loan receivable from subsidiaries $1 500 000

IV. Dr Loan payable to parent $1 500 000

Cr Cash $1 500 000

Reference no: EM131806822

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