JoJo Ltd Provided an Advance of $500 000 to Its

Multiple Choice

JoJo Ltd provided an advance of $500 000 to its subsidiary BoBo Ltd.Interest of $50 000 was charged during the year ended 30 June 20X8.On consolidation the following adjustment is needed at 30 June 20X8 in relation to the interest charged:

A) no adjustment needed;
B) DR Interest revenue $50 000 CR Interest expense $50 000
C) DR Interest expense $50 000 CR Interest revenue $50 000
D) DR Retained earnings $50 000 CR Cash $50 000