Question 7 (Marks: 25) The assets and liabilities of Mchek's Limited were as follows as at 31 December 2020: Land and buildings R850 000.00 Creditors R98 000.00 Furniture R185 000.00 Brand Name R250 0000.00 Bank overdraft R65 000.00 Long-term loan R20 000.00 Receivables R30 000.00 Inventories RS 500.00 Investment in bank Xero R15 000.00 Petty cash R2 000.00 SARS payable R8 500.00 Additional Information: 1. Debtors worth RS 000.00 were not included in the balance above. 2. Creditors discount of 5% was not taken into account in the above transactions. 3. Vat input of R550.00 was not levied on the SARS payable amount 4. The investment in Bank Xero yielded 8% Interest income for the year. Q.7.1 Calculate and discuss the Equity of Mchek's Limited at 31 August 2020. (25)