Question
A parent company High Ltd lent $18,000 to its subsidiary Low Ltd on 1 October 2020 at an interest rate of 7% p.a. Low Ltd
A parent company High Ltd lent $18,000 to its subsidiary Low Ltd on 1 October 2020 at an interest rate of 7% p.a. Low Ltd paid two-third of the yearly interest during the financial year ended 30 June 2021. What adjusting entry to eliminate the intra-group interest payable account is required?
Group of answer choices
Dr Interest payable $315
Dr Interest payable $1,206
Dr Interest payable $945
Dr Interest payable $630
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The Successful Audit New Ways To Reduce Risk Exposure And Increase Efficiency
Authors: Felix Pomeranz
1st Edition
1556233914, 978-1556233913
