Question 1 30 Marks You are an established Tax expert in the Namibian consultancy market. Upon finishing your Honours Degree in Accounting from the University of Namibia, you furthered your studies specializing in Tax and later became a well-established Tax Practitioner in the Republic of Namibia. At a recent business leadership seminar organized by NAMRA on the 15th of June 2022, you met your high school friend Ajay who studied science and thus has limited knowledge of Namibian Taxation. Ajay has always been a business optimist and registered his company in the retail industry (Ajay Retailers Pty Ltd) immediately after varsity. Knowing that you are a Taxation guru, Ajay briefed you after the meeting that he wants you to assist him with a few VAT related matters. A week after the seminar, your friend emailed you the following transactions of his company relating to June 2022 and requested your VAT expertise: 1. Ajay Retailers made Cash Sales of N$ 345 000. 2. Purchased inventory amounting to N$ 195 000 on credit. 3. Paid interest of N$ 10 000 in cash on loan obtained from Standard Bank Namibia. 4. Purchased stationery for N$ 5 700 in cash. 5. Paid Salaries of N$ 150 00. Required Through an email, respond to your friends email addressing the following: 1. Discuss in details the distinction between goods and services in the context of Value Added Tax 4 Marks 2. Briefly define exempt supplies in the context of Value Added Tax. 1 Mark 3. Show the journal entries to record transactions in the accounting records Ajay Pty Ltd. Amounts include VAT at 15% where applicable. Journal narrations are not required. 15 Marks 4. For the above transactions, draw up the t-account for the vat control account assuming the following: 8 Marks 1. Opening Balance was a receivable of N$ 25 000. 2. A payment was made during the VAT period of N$ 27 500. Communication and presentation marks 2