Multiple choice

The income tax paid by the proprietor on his personal income should be

  1. debited to capital account

  2. debited to P and L a/c

  3. debited to current a/c

  4. credited to capital a/c

  5. debited to proprieter loan a/c

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The income tax on his personal income should be debited to proprietor's capital account due to personal expenditure of the proprietor treated as drawings of the proprietor.