These transactions are for Sekwele Tractors, a business that sells tractors to farmers in the Eastern Cape, for the period June to August 20x9:

1 On 1 June, Sekwele Tractors bought 12 tractors and paid R1 080 000. All the tractors were sold for cash at a total of R1 620 000 during June.

2 On 1 July, Sekwele Tractors bought a further 15 tractors at the same unit cost and sold 10 at the same mark-up as during June.

3 On 1 August, Sekwele Tractors bought a further 20 tractors, paying the same purchase price as in June and July.

4 During August, 14 tractors were sold for cash at a total of R1 764 000.

You are required to:

1. Draft a trading statement for each of the three months.

2. State these statistics for each month:

a. Gross profit.

b. Cost assigned to closing inventory.

c. Unit mark-up in rands.

d. Mark-up as a percentage of cost.

3. Explain how the accounting concepts have been applied in answering Question 1.

Data from Question 1.

Explain the difference between the perpetual inventory system and the periodic inventory system.