Multiple Choice
Unite Ltd provided a loan of $1 000 000 to its subsidiary Inspire Ltd. Interest of $100 000 was charged during the year ended 30 June 2018. On consolidation, which of the following adjustments is needed at 30 June 2018 in relation to the interest charged?
A) No adjustment needed
B) Dr Interest revenue $100 000 Cr Interest expense $100 000
C) Dr Interest expense $100 000 Cr Interest revenue $100 000
D) Dr Retained earnings $100 000 Cr Cash $100 000
Correct Answer:
Verified
Correct Answer:
Verified
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