A1 plc acquired 75% of the ordinary share capital of B1 plc for £200,000 and 60% of the issued 8% cumulative preference shares for £15,000, both purchases being effected on 1 July 2022. The following balances are taken from the books of the two companies at 30 June 2023:

A1 plc has an ordinary share capital of £400,000 and B1 plc has an ordinary share capital of £150,000. The 8% cumulative preference shares of A1 plc are valued at £0, while those of B1 plc are valued at £30,000. A1 plc's share premium account stands at £30,000 and its general reserve at £80,000, with retained profits amounting to £75,000. B1 plc has a share premium account of £20,000, a general reserve of £25,000, and retained profits of £55,000.

A1 plc has trade accounts payable of £50,000 and taxation payable of £60,000, while B1 plc has trade accounts payable of £30,000 and taxation payable of £35,000. The depreciation on freehold property for A1 plc is £60,000 and for B1 plc is £25,000. The depreciation on plant and machinery for A1 plc is £140,000 and for B1 plc is £65,000.

A1 plc's freehold property at cost is £100,000 and its plant and machinery at cost is £320,000. B1 plc's freehold property at cost is £40,000 and its plant and machinery at cost is £200,000. A1 plc's investment in B1 plc is valued at £200,000, while B1 plc has no such investment. The inventory of A1 plc is valued at £140,000 and that of B1 plc at £80,000. A1 plc has accounts receivable amounting to £50,000 and cash amounting to £28,000. B1 plc has accounts receivable amounting to £25,000 and cash amounting to £10,000.

The following additional information is available: (a) Inventory of A1 plc includes goods purchased from B1 plc for £20,000. B1 plc charged out these inventory at cost plus 25%. (b) A proposed dividend of £10,000 by B1 plc includes a full year's preference dividend. No interim dividends were paid during the year by either company. (c) Creditors of A1 plc include £6,000 payable to B1 plc in respect of inventory purchases. Debtors of B1 plc include £10,000 due from A1 plc. The parent sent a cheque for £4,000 to its subsidiary on 29 June 2023 which was not received by B1 plc until July 2023. (d) At 1 July 2022 the balances on the reserves of B1 plc were as follows:

• Share premium: £10,000
• General reserve: £20,000
• Retained profits: £30,000

Required:

1. Prepare a consolidated balance sheet for A1 plc and its subsidiary B1 plc at 30 June 2023. Notes to the accounts are not required. Workings must be shown.
2. Explain the concept of 'minority interest' and how it is treated in the consolidated balance sheet.