Calculating owner's drawings via capital movement in incomplete records

Steps:

• Recall the capital formula: Closing capital = Opening capital + Net profit - Drawings.
• Rearrange to solve for drawings: Drawings = Opening capital + Net profit - Closing capital.
• In cash-based incomplete records, estimate net profit from sales less purchases and other items.
• Use opening capital as the baseline to compute the difference attributable to drawings.

Why B is correct:

• The capital account formula requires opening capital as a direct input to isolate drawings from profit and capital changes.

Why the others are wrong:

• A: Non-current assets purchased impact capital value but are not a required component in the drawings formula.
• C: Purchases help derive net profit but alone cannot calculate drawings without capital figures.
• D: Sales contribute to net profit estimation but require capital data to find drawings.

Final answer: B