JAMB Principles of Accounts 2008 Question 17

Question 17

Cash Book

Capital ₦12 700; Debtors ₦4 000; Sales ₦2 400; Purchases ₦7 100; Stationery ₦1 900; Wages ₦1 230.
The owner wishes to maintain an amount equal to ¾ of capital as drawings.
What is the amount withdrawn?

  1. A.N9525
  2. B.N9000
  3. C.N7100
  4. D.N6400
Show the answer and explanation

Answer: A (N9525)

Explanation

Drawings = ¾ × 12 700 = ₦9 525.