Question

journal entry income tax paid by cheque​

Answer 1

Explanation:

income tax A/c dr

To bank A/C

Answer 2

Entry will be :-

Income Tax Acc Dr 7000 -

TO Bank Acc - 7000

Being income tax paid by cheque.

Reason

Income tax is a nominal account since it is an expense, and nominal accounts must be debited of all income and gains to comply with the norm.

Since we paid by check, the bank is the giver in this transaction; therefore, in accordance with the personal account rule, we credited the bank account.

Explanation:

• Cheque-received journal entries document the bank transaction that results in the receiving of funds from clients, insurance payouts, or other sources as part of everyday business operations.
• As a result of this transaction, our bank balance rises and our debtor receivable amount falls, so we will debit the bank account and credit the customer account. The receivable balance is transformed into a liquid state (Bank balance).

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