Concept:Closing capital is calculated from opening capital, profit, and drawings.
Explanation:Formula: Closing Capital = Opening Capital + Profit − Drawings.
Opening capital = ₦40,000.
Profit for the year = ₦50,000.
Expected closing capital before drawings = ₦40,000 + ₦50,000 = ₦90,000.
Actual closing capital = ₦70,000.
Difference = ₦90,000 − ₦70,000 = ₦20,000.
This means ₦20,000 was withdrawn by Beauty during the year.
Answer:A. Drawings of ₦20,000 was made.