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JAMB Principles of Accounts 2003 Question 4

Question 4

Trial Balance

Use the information below to answer questions 4 and 5.
(₦)
Capital 2 000
Bank 1 200
Purchases 2 500
Sales 6 700
Stock 1 300
Creditors 1 000
Fixed assets 3 700
Drawings ?
Drawings are always estimated at 50% of capital
The trial balance total is

  1. A.₦9 700
  2. B.₦8 700
  3. C.₦7 900
  4. D.₦7 800
Show the answer and explanation

Answer: A (₦9 700)

Explanation

Drawings = 50% × 2 000 = 1 000. Debits: 1 200 + 2 500 + 1 300 + 3 700 + 1 000 = 9 700. Credits: 2 000 + 6 700 + 1 000 = 9 700.