Rentals Enterprise (Pty) Ltd (Rentals), a Namibian owned company with a February financial year end owns properties in and around Windhoek that are leased out under for both residential and commercial purposes. The Financial Accountant of this company went on extended sick leave without recording some of the transactions which occurred in the last two months of the financial year. The Managing Director of Rentals knows you are Namibian Tax expert and he thus approached you to assist the company with the Value Added Tax implications of the following transactions relating to the 2-months VAT period ending 28 February 2023. Rentals property portfolio includes both the letting of residential and commercial property, of which the Managing Director provided you the portfolio setting out supplies for the two months as follows: Commercial rentals N$5 420 305 Residential rentals N$2 359 000 Total Lease Income N$7 779 305 Assume that the correct apportionment ratio as determined by NAMRA is in line with the lease income split of Rentals as indicated above. Rentals additional income and expenditures for the 2-month tax period ending 28 February 2023 are as follows: Other Income Note: Amount N$ Interest charged on overdue rentals from commercial property 65 044 Interest charged on overdue rentals from residential tenants 28 308 Insurance payout 1 273 500 Expenditure Interest on mortgage bond 770 151 Levies paid (all relate to residential property) 471 800 Security 235 900 Telephone & Internet Services 2 5 570 Cleaning Services 3 450 Repairs 3 208 400 Maintenance 42 600 Bank Charges 622 344 Audit fees 155 586 Wages 580 970 Insurance premiums (for all property) 45 100 Legal expenditure for new lease contracts; Commercial tenants 12 500 Residential tenants 24 670 Bad debts 4 12 700 Entertainment expenditure 5 2 430 Notes: 1. The insurance settlement was for fire damages to two separate buildings. A commercial property suffered fire damages, resulting in a pay-out of N$ 235 000. A second fire caused damages to a residential property, of which compensation of N$ 38 500 was paid out by the Insurance Company. 2. Rentals pays the general managers telephone account. The general manager has to make business calls on a regular basis. The general manager indicated that 70% of his calls were for business purposes. The telephone bill for the 2-month period was N$ 2 125. Wi-Fi and Internet services amounted to N$ 980, Angie incurred N$ 1 450 worth of calls, of which 80% were for business purposes. 3. It cost N$ 180 000 to repair the burnt down commercial property and N$ 28 400 to repair the residential property. 4. Bad debts are made up of N$ 7 400 written off for residential tenants and the rest relates to commercial tenants. 5. Rentals Managing Director takes the Auditors and the company lawyer out for lunch from time to time. REQUIRED: a) Prepare journals entries to record the above transactions in the books of Rentals Enterprise (Pty) Ltd for the year ended 28 February 2023. Assume all amounts include VAT were applicable. Journals narrations are required. Where amounts have no VAT implications, support this with reasons in the narration. (30 marks) b) Calculate the VAT payable or refundable to Rentals Enterprise Pty Ltd for the VAT period ended 28 February 2023. (15 Marks)