Given:
| Additional capital Capital Closing capital Net profit | ₦ 4000 8000 12000 1500 |
The drawings for the period stand at
A
1500
B
3000
C
12,000
D10,500
Answer is A
Let:
OC = Opening Capital
AC = Additional Capital
NP = Net Profit
D = Drawings
CC = Closing Capital
Then;
OC + AC + NP – D = CC
8000 + 4000 + 1500 – D = 12,000
13,500 – D = 12,000
D = 13,500 – 12,000
D = ₦1500
Hence, Drawings = ₦1500
