Question

Income tax paid by the sole-proprietor from the business bank account is debited to ______________.

• A. Income tax account
• B. Bank account
• C. Capital account
• D. Provision for taxation account

Answer 1

The correct option is A Income tax account

The entries to be passed after payment of income tax are
Income Tax A/c Dr.
To Bank A/c
Therefore, income tax paid, is debited to Income Tax Account.