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JAMB Principles of Accounts 2007 Question 29

Question 29

Accounting Equation

Given:
Opening capital ₦7 000
Additional capital ₦3 500
Net profit ₦2 500
Closing capital ₦10 250
The drawings for the period stand at

  1. A.₦2 750
  2. B.₦3 750
  3. C.₦2 500
  4. D.₦2 570.
Show the answer and explanation

Answer: A (₦2 750)

Explanation

Drawings = opening capital + additional capital + profit − closing capital = 7 000 + 3 500 + 2 500 − 10 250 = ₦2 750.