3
Question
Rs 1200 being advance income tax of the proprietor paid by the firm is treated as ______.
Rs 1200 being advance income tax of the proprietor paid by the firm is treated as ______.
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Solution
The correct option is B Drawing
Income Tax is a personal liability of the proprietor. Hence any amount paid or withdraw from the business for personal purposes is to be debited to drawing account.
Income Tax is a personal liability of the proprietor. Hence any amount paid or withdraw from the business for personal purposes is to be debited to drawing account.
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