QUESTION THREE

$[25]$

Vertex Pty Ltd is a shoe retailer in Johannesburg, Gauteng. On $10$ February $2024,$ a vendor bought pairs of shoes at a cost price of R$240000$ exclusive of VAT and paid the wholesaler R$276000$ cash. On $27$ February $2024,$ the vendor sold the pair of shoes to a customer for R$414000($inclusive of $15\%$ VAT$)$ cash. Assume that the periodic inventory method is in use and that this was the only transaction for February $2024.$

Required:

Show journal entries to record the purchase and sale of the shoe during February $2024.$ Thereafter, record the entries for the payment of VAT to SARS on due date $20$ March $2024.$

$(25)$