O-LevelAccountingSources and recording of data7707/11 · May/June 2016 · Q271 Mark

An employer deducts income tax from staff wages each week and pays it to the government once a month on the last day of the month. What does the entry posted to the credit side of the income tax account on 10 January represent?

Apayment made to the government

Brefund of income tax to an employee

Cthe amount deducted from staff wages on that date

Dthe total for the month owed to the government

✓ Correct answer

C: the amount deducted from staff wages on that date

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Topic: Sources and recording of data, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2016 Paper 1 Variant 1, question 27.

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