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JAMB Principles of Accounts 2004 Question 11

Question 11

Accounting Equation

Zakari started a business in January 2000. He bought a shop costing ₦54,000 and stock worth ₦7,600. Profit for the year amounted to ₦22,100. His closing capital was ₦73,800. Zakari's personal drawings amounted to

  1. A.₦2,300
  2. B.₦9,900
  3. C.₦17,100
  4. D.₦19,500
Show the answer and explanation

Answer: B (₦9,900)

Explanation

Opening capital = 54,000 + 7,600 = ₦61,600. Closing capital = opening + profit − drawings, so drawings = 61,600 + 22,100 − 73,800 = ₦9,900.