Rs 1500 being LIC premium of proprietor paid by the firm will be debited to ________________.

Income tax a/c

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Drawing a/c

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Profit and loss a/c

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None

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Solution

The correct option is A Drawing a/c
LIC premium is a personal liability of the proprietor. Hence, any amount paid or withdrawn from the business for personal purposes is to be debited to drawing account.

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Q. Income tax paid by a sole proprietor on his business income should be ____________.

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appearing in the Trial balance ______________.

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(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
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Rs 1500 being LIC premium of proprietor paid by the firm will be debited to ________________.

The correct option is A Drawing a/cLIC premium is a personal liability of the proprietor. Hence, any amount paid or withdrawn from the business for personal purposes is to be debited to drawing account.

The correct option is A Drawing a/c
LIC premium is a personal liability of the proprietor. Hence, any amount paid or withdrawn from the business for personal purposes is to be debited to drawing account.