Question

Income Tax paid by 'Sole Trader' is shown as:

• A. On the debit side of the Trading account
• B. On the debit side of the Profit & Loss account
• C. On the debit side of the Income tax account
• D. None of the above

Answer 1

Answer: (D)

None of the above

Income Tax paid is shown by way of deduction from the capital in the Balance Sheet.