Question

Paid lncome tax 10000 sales tax 5000 journal entry

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Income tax - nominal A/c , its the expense to the company therefore its debited

Sales tax - nominal A/c , its the expense to the company therefore ots debited

Cash A/c -real A/c , where money comes out of the company therefore its credited

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Journal entry

Income tax A/c   Dr   10000

Sales tax A/c      Dr     5000

                   To cash A/c              15000

(being taxes paid)

Answer 2

Drawings A/C.  Dr.  Rs.15,000     To Bank A/C.  Rs 15,000 (Being Income Tax and Sales Tax paid) Note: Income Tax paid and Sales Tax paid should be considered as Drawings.