WAEC Accounting 2020 Paper

Concept:In incomplete records, profit is determined by comparing opening and closing capital after adjusting for drawings.Explanation:Drawings reduce the owner’s capital.So, drawings must be added back to the closing capital.Assuming no additional capital was introduced during the period:$$\text{Closing Capital} = \text{Opening Capital} + \text{Profit} - \text{Drawings}$$Rearranging this gives:$$\text{Profit} = \text{Closing Capital} + \text{Drawings} - \text{Opening Capital}$$This method is called the capital comparison method.It is used when full double-entry records are not available.Answer:$$\text{Closing capital} + \text{Drawings} - \text{Opening capital}$$So, the correct option is B.