Consolidation SFP

Hello sir. hope u are well.

Sir how to deal this note extract from long consolidated SFP

Highveldt Co, a public listed company, acquired 75% of Samson Co’s ordinary shares on 1 April 20X4

Included in Highveldt Co’s investments is a loan of $60 million made to Samson Co at the date of acquisition. Interest is payable annually in arrears. Samson Co paid the interest due for the year on 31 March 20X5, but Highveldt Co did not receive this until after the year end. Highveldt Co has not accounted for the accrued interest from Samson Co.

Non-current liability. P S

10% intragroup loan (note (ii)) Nil 60M

As per kit Answer
reduce 6 from the P’s RE and do nothing to S,s RE

in my point of view, we cancel the The loan / interest Receivable and loan / interest payable that is straight forward. but difficult part is how to deal the inter company interest in the SFP Retained earning part. Why not to fix cash in transit first DR. Cash CR. Interest Income, and then cancel the interest paid and interest income DR. interest income (P’S RE) CR interest paid (S’s post aqua’ RE).

help me sir where am i getting wrong.