Question

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

• A. treated as an expense in the profit and loss account
• B. treated as a deduction from sales in the profit and loss account
• C. added to the capital account in the balance sheet
• D. deducted from the capital account in the balance sheet

Answer 1

Answer:

D. deducted from the capital account in the balance sheet

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