If A took firm's goods for personal use valued at Rs 7,500, what is the correct adjustment?

Correct answer: Debit A's account as drawings

Goods taken by a partner for personal use are drawings. The correct double entry is: Debit — A's Drawings account; Credit — Purchases or Stock/Inventory account (depending on recording practice). Therefore the proper adjustment is to debit A's account as drawings. Option B (credit as salary) is incorrect because partner's salary is an appropriation/adjustment of profit and is not recorded by crediting the partner as "salary" in this context. Options C and D are irrelevant since withdrawals reduce partner's capital/drawings and do not directly debit firm income or credit reserves. Exam tip: Always treat goods withdrawn for personal use as drawings — debit the drawings account and credit Purchases or Inventory accordingly so the profit calculation remains correct.