Correcting drawings from selling price to cost price Steps:

• Selling price of goods taken for personal use is $150.
• With 50% markup on cost, cost price = $150 ÷ 1.5 =$100.
• Drawings were debited $150 instead of$100, overstating drawings by $50.
• Capital balance understated by $50, so correct balance =$300 + $50 =$350.

Why D is correct:

• Drawings for goods taken must be at cost price per accounting standards for sole traders, adjusting capital by the markup difference ($50).

Why the others are wrong:

• A: Adds $125 excess, possibly double-counting markup and another amount.
• B: Adds full $150, treating error as no drawings at all.
• C: Adds $100, mistakenly adjusting by full cost instead of overstatement difference.

Final answer: D