What is the value of AB’s drawings for the year ending 31 December 20X5?


AB commenced trading on 1 January 20XS. introducing $50,000 cash and $15,000 of assets to the business. The profit earned and retained in the business for the year ended 31 December 20X6 was $160,000. AB’s closing capital at 31 December 20X5 was $190,000.

What is the value of AB’s drawings for the year ending 31 December 20X5?
A . $35,000
B . $20,000
C . $95,000
D . $135,000

Answer: A

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