JoJo Ltd provided an advance of $500 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:

Select one:

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