The drawings for the period stand at?

By: |Published on: Jan 10|Categories: Accounting WAEC| 0 comments

Given:

₦
Additional capital 4000
Capital 8000
Closing capital 12000
Net profit  1500

A. 1500
B. 3000
C. 12,000
D. 10,500

Correct Answer: Option A

Explanation

Using the formula:
OC + AC + NP – D = CC

where: OC = Opening Capital;  AC = Additional Capital; NP = Net Profit; D = Drawings; CC = Closing Capital.

Then;
8000 + 4000 + 1500 – D = 12,000
13,500 – D = 12,000
D = 13,500 – 12,000
D = ₦1500

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