Here are some selected transactions for Valley Enterprises:

• Bought inventory on credit, R1 000.

• Bought inventory for cash, R600.

• Sold inventory on credit, R300 (cost R200).

• Sold inventory for cash, R400 (cost R267).

• Assume opening inventory to be R5 000 and closing inventory to be R6 000.

You are required to:

1 Record the transactions in the general journal for both the perpetual inventory system and periodic inventory system.

2 Calculate the:

a. Gross profit for each system.

b. Gross profit as a percentage of sales under each system.

c. What is the mark-up on cost for the perpetual inventory system?