An owner withdraws R12 000 worth of goods for personal use. What is the correct adjustment?

When an owner withdraws goods for personal use, it affects two main accounts:

1. Drawings: This account records the owner's personal withdrawals from the business. Drawings reduce the owner's equity. To increase the Drawings account (which is a contra-equity account), we debit it.
2. Purchases: The goods withdrawn were originally purchased by the business. Since these goods are no longer available for sale, the cost of goods purchased for resale needs to be reduced. To reduce the Purchases account, we credit it.

Therefore, the correct adjustment is to debit Drawings and credit Purchases for the value of the goods withdrawn.

Let's look at the options:

• A. Debit Drawings; Credit Purchases R12 000: This correctly reflects the increase in drawings and the decrease in purchases.
• B. Debit Purchases; Credit Drawings R12 000: This is incorrect as it would increase purchases and decrease drawings.
• C. Debit Equity; Credit Bank R12 000: This would be for a cash withdrawal, not goods, and typically Drawings is debited first.
• D. Debit Inventory; Credit Drawings R12 000: Debiting Inventory would increase it, which is incorrect, and crediting Drawings would decrease drawings.

The final answer is $\boxed{\text{A}}$