Question 8 ( 30 marks)

The following trial balances were extracted from the records of three companies on June 30, 2022.

Particulars	BAND Limited	MINGER Limited	BHUMB Limited
DEBITS:
Non-current assets	119,700	88,400	115,000
Current assets	171,000	40,200	96,000
Investment insubsidiary companies	204,000
Dividends receivables
MINGER Limited	5,100
BHUMB Limited	12,000
TOTAL	511,800	128,600	211,000
CREDITS
Ordinary Shares of $1.00each	100,000	50,000	70,000
6% Preference shares of $ l .00 each	30,000	20,000	-
Share premium account	J 0,000	5,000	-
Profit & loss account	205,000	30,000	84,000
Current Liabilities	165,000	17,000	43,000
Proposed dividends:
Ordinary	-	6,000	14,000
Preference	l,800	600	-

TOTAL 511.800 128,600 211,000

The following additional information is relevant:

1. the investments were acquired cumulative dividend as follows:

	Date	Retained profit & loss account($)	Cost($)
MINGER Limited
40,000 ordinary shares	June 30, 2018	20,000	55,000
10,000,6% preference shares	June 30, 2019	24,000	9,000
BHUMB Limited
60,000 ordinary shares	June 30, 2020	63,000	146.000
			210.000

2. The preference dividend of MINGER Limited for the half year to June 30, 2019 was received by BAND Limited on July 4, 2019; and an ordinary dividend of $4,000 was received in 2019 from MINGER Limited for the year June 30, 2018.Both these dividends were credited to the profit and loss account of BAND Limited.

In July 2020, BAND Limited received from BHUMB Limited an ordinary dividend of

$6,000 for the year to June 30, 2020.This dividend was credited against the cost of shares in BHUMB Limited.

3. The share premium account of MINGER Limited was created on incorporation.

4. Adjustment is to be made in the accounts of BAND Limited for proposed ordinary dividend of $15,000.

You have also been provided with partial working papers as follows:

Adjustment Account

Shares in MINGER Limited:		Share Capital
Ordinary$(55,000-4000)	51,000	MINGER Limited
Preference $(9,000-300)	8,700	Ordinary	40,000
Shares in BHUMB Limited	l 40,000	Preference	10,000
		BHUMB Limited:	60,000
		Profit & Loss account:
		MINGER Limited	16,000
		BHUMB Limited	54,000

	MINGER Limited-share premium account	4,000
	Balanceto (a/c name)	? (5 marks)
199,700		199,700

Minority Interest Account

Balance to (a/c name)	?	Share Capital
		MINGER Limited
		Ordinary	10,000
		Preference	10,000
		BHUMB Limited	l 0,000
		Profit & Loss Account
		MINGER Limited	6,000
		BHUMB Limited	12,000
		MINGER Limited-Share Premium account	1,000
	49 000		49.000

Consolidated Profit & Loss Account

BAND LIMJTED		BAND LIMJTED	205,000
Shares in MINGER Limited		MINGER LIMITED	?
(Pre-acquisition dividends)		BHUMB LIMITED	?
Ordinary(pre-acq.)	?
Preference {pre-acq.)	?
Proposed dividend	?
MINGER LIMITED
Adjustment account
{80% *$20,000)	l 6 000
Minority interest account
(20% *$30,000)	6,000
BHUMB LlMlTED
Adjustment account
(60/70* $63,000)	54,000
Minority interest account

(1/7 * $84,000)	12,000
Balanceto(a/c name) ?	?
	319,000		319,000

Consolidated Share Premium Account

MINGER Limited		BAND LIMITED	10,000
Adiustment Account		MINGER LIMITED	?
(80% *$5000)	4000
Minority Interest account
(20% * $5000)	-1000
Balance to?	10,000
	15.000		15.000

Proposed dividends due to minority shareholders:

MINGER Limited:
Ordinary(20% * ?)	?
Preference (50% *?)	?
BHUMB Limited
(1/7*$l 4,000)	2,000
	3,500

Required:

1. complete the partial working papers that is the question marks
2. Prepare the Consolidated balance sheet of BAND Limited and its subsidiary companies as at June 30, 2022.