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WAEC Accounting 2013 Objective — Question 5

Question 5 of 50 from the West African Examinations Council (WAEC) Accounting 2013 Objective paper, with the correct answer and a full explanation.

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The capital of a sole trader changes as a result of

  • A. paying wages by cash
  • B. equipment purchased by cheque
  • C. drawings by chequeCorrect
  • D. purchases of credit

Explanation

When the sole proprietor makes withdrawal from the company his capital reduces.

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