The following information was extracted from the accounting records of Sankofa Ltd on 30 June 2020: R Inventories (additional information 3) 305 300 Trade and other receivables 220 000 Trade and other payables 35 000 Dividends payable 5 000 Bank 23 000 Retained earnings (30/06/2019) 49 800 Long-term loan Kwasi Ltd (additional information 4) 950 000 Land at cost 1 000 000 Buildings at cost 1 500 000 Machinery and equipment at cost (30/06/2019) 390 000 Motor vehicles at cost (30/06/2019) 690 000 Accumulated depreciation (30/06/2019) - Machinery and equipment 48 750 - Motor vehicles ? Investments (additional information 2) 255 000 Additional information: 1. The following information regarding property, plant and equipment is available: 1.1 Land and buildings consist of Erf 392, Limpopo, with a factory building thereon. The land was acquired on 1 September 2018 for R1 000 000. A factory building was erected during the current year at a cost of R1 500 000. The company purchased machinery at a cost of R300 000 and paid for installation cost of R25 000 on 1 July 2019. This new machinery was withdrawn from production from 1 August 2019 to 31 January 2020 in which time it was used in the process of erecting the factory building. This cost was not taken into consideration in determining the cost of R1 500 000 for the erection of the building. The building was completed and brought into use by management on 29 February 2020. The land was revalued for the first time on 30 June 2020 at a market value of R1 120 000 by Mr Mkefa, a sworn appraiser. 1.2 All machinery and equipment except machinery purchased in the current year were purchased on 1 October 2018. 1.3 One of the delivery vehicles was sold for R50 000 on 31 December 2019. This vehicle was originally purchased on 1 April 2017 for R260 000. All other vehicles were purchased on 1 July 2018. 1.4 Non-current assets are depreciated as follows: - Machinery and equipment: straight-line method over 6 years. - Motor vehicles: 25% per annum using the straight-line method. - Buildings: 2% per annum using the straight-line method. FAC2601/101/3/2022 6 ASSIGNMENT 2 (Second semester) (continued) 2. Investments consist of the following: - 70 000 Ordinary shares in Ziggy (Pty) Ltd at a cost of R105 000. The issued share capital of Ziggy (Pty) Ltd consists of 600 000 ordinary shares. The directors valued the shares at R1,20 each on 30 June 2020. These shares are classified as assets at fair value through other comprehensive income (not held for trading). - 30 000 Preference shares in Adam Ltd at a cost of R60 000, purchased for speculative purposes. The issued share capital of Adam Ltd consists of 300 000 ordinary shares and 50 000 preference shares. The shares of Adam Ltd are traded on the JSE and the market value of the preference shares on 30 June 2020 amounted to R3 per share. - 90 000 Ordinary shares in Nkosi Ltd at a cost of R90 000. The issued share capital of Nkosi Ltd consists of 120 000 ordinary shares. The market value of the investment was R100 000 on 30 June 2020. 3. Inventories on 30 June 2020 consisted of the following: R - Raw material 130 000 - Finished goods 85 000 - Work in progress 90 300 Inventory is valued at the lower of cost or net realisable value. At the 2020 year end the directors determined that the net realisable values of the inventories were as follows: - Raw material: 3% below cost - Work in progress: 2% above cost - Finished goods: 8% below cost 4. The long-term loan to Kwasi Ltd granted on the 30 June 2020, bears interest at a rate of 13% per annum payable monthly in arrears. The loan is secured by a first mortgage bond over the companys immovable property. The loan is repayable in full on 30 June 2030. 5. On 30 June 2020, 20 000 ordinary shares were issued at R1,25 each. No entries have been recorded as yet.

REQUIRED: Prepare the Asset section of the statement of financial position, as well as the relevant notes of Sankofa Ltd as at 30 June 2020 to comply with the requirements of International Financial Reporting Standards (IFRS). Ignore comparative figures and the note on accounting policy. A