Concept:Goods taken by the owner for personal or family use are recorded as drawings.
Explanation:When Sulah takes textile materials worth
N500 for his children, those goods leave the business without any sale.
This action reduces the business assets.
It is not a loan, because the owner is not borrowing money or goods from the business.
It is not stock, because stock means unsold goods remaining in the business.
It is not sales, because no customer transaction has taken place.
Therefore, the withdrawal is treated as drawings, which reduce the owner’s capital in the business.
Answer:C. drawings