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Multiple choice

Income tax paid by sole proprietor should be debited to

  1. P and L account

  2. capital account

  3. P and L appropriation account

  4. trading account

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

It is an expense of personal account. So, it should be treated as drawings and debited to capital account. It is a charge against profits in case of companies.

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