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JAMB Principles of Accounts 2016 Question 18

Question 18

Trial Balance

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Compute the amount withdrawn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

Answer: A (₦1 000)

Explanation

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