WAEC Accounting 2023 Objective — Question 38
Question 38 of 50 from the West African Examinations Council (WAEC) Accounting 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
Beauty started business with #40,000, made a profit of #50,000 and ended the year with #70,000 capital. What would have accounted for the closing capital?
- A. A cash shortage of #30,000 was recorded
- B. Drawings of #20,000 was madeCorrect
- C. Beauty was paid a salary of #40,000
- D. The opening capital of #40,000 was invested
Explanation
Opening capital + Profit - Drawings = Closing capital → 40,000 + 50,000 - Drawings = 70,000 → Drawings = #20,000.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.