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JAMB Principles of Accounts 2003 Question 5

Question 5

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
Compute the amount withdrawn

  1. A.₦2 000
  2. B.₦1 500
  3. C.₦1 250
  4. D.₦1 000
Show the answer and explanation

Answer: D (₦1 000)

Explanation

Drawings are 50% of capital: 50% × ₦2 000 = ₦1 000.