The following information relates to Ramatla CC for the year ended 30 September 2017:

1. R80 000 loan was granted to Liseho, a member of the CC on 1 May 2017. Interest is calculated at 10% per annum and is capitalised at the end of the financial period. The loan is unsecured and immediately callable.

2. Investments consist of:

30 000 ordinary shares in Naleli Ltd, purchased on 1 April 2015 for R50 000. On

30 September 2017, the fair value of shares held in Naleli Ltd was determined at R90 000. These shares were purchased for speculative purposes.

25 000 ordinary shares in Sizwe-Sethu (Pty) Ltd purchased at a cost of R55 000. On 30 September 2017, these shares were valued at R40 000.

Fixed deposit of R50 000 at BASA Bank made on 31 December 2013 for 60 months at 12% interest per annum.

QUESTION 2

Which of the following alternatives represents the correct amount to be disclosed as financial assets in the non-current assets section of the statement of financial position of Ramatla CC as at 30 September 2017?

1. R55 000

2. R90 000

3. R180 000

4. R40 000