Journal Entry for Paid Income Tax of Rs. 10,000

The journal entry for paid income tax of Rs. 10,000 would be as follows:

Debit: Income Tax Expense Account - Rs. 10,000
Credit: Bank Account - Rs. 10,000

Explanation of Debit and Credit Rules

Debit and Credit are two fundamental rules of accounting. Debit refers to the left-hand side of the account, while Credit refers to the right-hand side of the account. In the above journal entry, the following rules apply:

Debit Rule:

The Income Tax Expense Account is debited as it is an expense account, and expenses are always debited in accounting.

Credit Rule:

The Bank Account is credited as we are paying the income tax from our bank account, and all payments made through the bank are credited.

In summary, the debit and credit rules in accounting are as follows:

Debit Rules:

- Increase in assets
- Decrease in liabilities
- Increase in expenses
- Decrease in income or revenue

Credit Rules:

- Decrease in assets
- Increase in liabilities
- Increase in income or revenue
- Decrease in expenses

Conclusion

In conclusion, the journal entry for paid income tax of Rs. 10,000 is shown above, and the debit and credit rules used in the entry are explained. Debit and Credit rules are essential in accounting as they ensure that the financial transactions are recorded accurately and consistently.

Income Tax a/c dr.