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A Ltd has 80% control over Y Ltd, sold inventory to Y Ltd during the year

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A Ltd has 80% control over Y Ltd, sold inventory to Y Ltd during the year. This sale 100,000$ was recorded in trade receivables and trade payables. On 31/12/2018, Y Ltd remitted payment of 60,000$ for the inventory purchase but the payment was only recieved on 2/1/2019/

The adjustments required to eliminate intercompany balances are:

a. Minus 100,000$ from trade receivables and 60,000$ from trade payables

b. Minus 100,000$ from trade receivables and add 60,000$ to bank

c. Minus 100,000$ from trade receivables and minus 40,000$ from trade payables

d. Minus 100,000$ from trade receivables and 40,000$ from trade payables and add 60,000$ to bank