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 2018. On consolidation, the following adjustment is needed at 30 June 2018 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