Question 1 (25 Marks: 50 minutes) ) VIRTUAL AIR (PTY) LTD is a small company which because of its aggressive advertising campaigns, has a significant profile. The company is engaged in the manufacturing gas filled hot air balloons Al 31 December 2020 (the company's year- end is 31 December) the following trial balance was extracted from its books. Account details Debit Credit Bank overdrafts 7266 Furniture and office equipment at cost 19 725 Listed investment at cost 5 120 Loan secured by notarial bond 125 000 Loose tools, valuation 3260 Accumulated depreciation: Furniture and office equipment 6225 Accumulated depreciation: Vehicles 10 250 Provisional tax paid 11 200 Unlisted investments 2 260 Retained income 51 163 Stated capital (Authorised share capital of 500 000 193 621 share of no par value) Inventories 280 473 Accounts payable 123 439 Accounts receivable 197 747 Vehicles at cost 25 620 519.803 519.803 Most of the closing entries had been passed already You are able to ascertain that . The following depreciation rates are applicable o Furniture and office equipment 10% on the straight line method o Vehicles- 25% on the straight line method The listed investment were acquired for speculative purposes c Inventory are valued at lower of cost and net realisable value on a FIFO basis c An interim dividend of N$ 5 000 was declared and paid on 01 October 2020 and a final dividend of N$ 5 000 was declared on 30 December 2020. This dividend will be paid on 18 January 2021 Normal taxation amounted to NS23 441 c The loan of NS 125 000 is to be repaid in five (5) years' time and is secured by a notarial bond REQUIRED 1. Prepare the statement of financial position for "VIRTUAL AIR (PTY) LTD as at 31 December 2020 to comply with the requirements of IFRS and Companies Act (10 marks) 2 Prepare the following accounting policies and notes to comply with the requirements of IFRS and Companies Act to accompany the financial statements with regard to: (15 marks) 21 Property, plant and equipment 22 Long-term borrowings 23 Inventories 24 Listed investments