Which One of the Following Statements Is Correct? a Sole

Multiple Choice

Which one of the following statements is correct? A sole trader's drawings appear in his or her accounts as:

A) An addition to capital in the statement of financial position.
B) A deduction from capital in the statement of financial position.
C) An addition to gross profit in the statement of profit or loss.
D) A deduction from gross profit in the statement of profit or loss.