Adjustments

Correct answer: A. Credit Rs 18,000 to B’s account

The governing concept is recognition of a firm asset purchased with a partner’s personal money. Because the computer was bought for the firm, the computer account is debited as a business asset. Since B paid personally, the firm has received the asset without paying cash and now owes B Rs 18,000. That liability or claim is recorded by crediting B’s capital or current account, depending on the firm’s account system. It is not a debit because B has not taken firm money, and it is not drawings because the transaction benefited the firm. No adjustment would leave the asset and payable unrecorded. Therefore option A is correct.

Correct answer: A. Rs 3,000 debit

The governing concept is balancing a partner’s current account by classifying credits and debits correctly. The opening credit of Rs 4,000 and salary of Rs 8,000 are credit items, giving total credits of Rs 12,000. Drawings of Rs 15,000 are recorded on the debit side. Since the debit exceeds the credit by Rs 15,000−Rs 12,000=Rs 3,000, the closing balance is Rs 3,000 debit. This means A has withdrawn Rs 3,000 more than the credits available in the account. Option B incorrectly adds all figures and labels the result credit. Option C reverses the balance side, while D ignores the credit entries. Therefore option A is correct.

Correct answer: A. It will be credited

The governing concept is that a payable amount creates or increases the firm’s liability to the partner. When the firm owes a partner, the partner’s capital or current account is credited because the credit records an increase in the partner’s claim against the firm. Examples include a firm expense paid personally by the partner, salary or interest due under the deed, and a loan payable to the partner. A debit would reduce the partner’s claim and is generally used for drawings or amounts recoverable from the partner. Closing the account or making no entry would fail to record the obligation. Therefore option A is correct.

Correct answer: A. Rs 20,000

The governing idea is that net drawings measure the amount finally retained by the partner after considering money returned to the firm. The first transaction removed Rs 28,000 from the business for the partner’s use. The later deposit of Rs 8,000 puts part of that amount back into the firm, so it must be deducted from the original drawings. The calculation is: net drawings = original drawings − amount redeposited = Rs 28,000 − Rs 8,000 = Rs 20,000. Option B incorrectly adds a withdrawal and a repayment, although they have opposite effects. Option C ignores the repayment, while option D reports only the returned amount. Therefore, option A gives the correct net drawings.

Correct answer: A. To find correct normal earning

Past profits may contain abnormal gains, abnormal losses, non-recurring expenses, or income that will not continue. Goodwill is based on the business’s future maintainable earning capacity, so these unusual items must be removed or suitably adjusted before an average or super profit is calculated. The governing purpose is therefore to determine the correct normal or maintainable earning. Option A is correct. Closing the cash account is unrelated to profit normalization; changing partners’ names is a legal or administrative matter; and counting goods concerns inventory, not goodwill valuation. Proper adjustment makes the profit figure comparable and prevents goodwill from being overstated or understated.