Assuming that Elsons Hockey Supplies is a Namibian registered VAT vendor:

I. Prepare journal entries to account for the following transactions. Journal narrations are not required. Elson uses the perpetual inventory system to account for inventory and all transactions are on a cash basis. (4)

II. Determine the amount of VAT that is due from or payable to the Receiver of Revenue and indicate whether it is due or payable (1)

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a) Purchases of Hockey sticks and balls for the month of March 2019, N$28 500 (inclusive of VAT).

b) Sales of Hockey sticks and balls for the month of March 2019, N$18 000 (exclusive of VAT), cost price N$12 000 (exclusive of VAT).

c) Payment of salaries for the month of March 2019, N$8 000.

VAT 15%