If 'Prepaid Wages' is given in Trial Balance, it is shown in _____________.

Debit of Trading A/c

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Debit of Trading A/c and Assets

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Debit of P&L A/c

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Assets

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Solution

The correct option is A Assets
At the end of the financial year, adjustment entries are also need to be passed for various adjustments. These adjustments are like outstanding expenses, prepaid expenses etc. Once these adjustment entries are passed, a final trial balance is prepared.
Prepaid expenses appearing in trial balance will be shown in asset side of the balance sheet.

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Similar questions

Q. Select the most appropriate alternatives from those given below and rewrite the sentence :

Wages A/c is transferred to ________ A/c.
a) Trading A/c
b) Profit And Loss A/c
c) Trial Balance
d) Any

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

Q. Select the most appropriate alternatives from those given below

A list of balances of all the accounts in ledger is called __________.
a) Balance Sheet
b) Profit & Loss A/c
c) Trading A/c
d) Trial Balance

Q. Following balances appear in the Trial Balance of a firm as on 31st March, 2019:

		₹
Opening Stock:	Raw Material	80,000
	Finished Goods	1,40,000
Purchases		3,60,000
Sales		7,00,000
Returns:	Purchases	10,000
	Sales	6,000
Wages		1,30,000
Factory Expenses		90,000
Freight:	Inwards	20,000
	Outwards	30,000
At the end of the accounting period, stock was:
Raw Materials		70,000
Work-in-Process		20,000
Finished Goods		1,10,000

Prepare Trading Account of the firm.

Following is the trial balance of J Subramanium on 31st March, 2016. Prepare the trading and profit and loss account for the year ended 31st March, 2016.

Trial Balance
as on 31st March, 2016
$\begin{matrix} Name of Account & Debit (Rs.) & Credit (Rs.) Capital A/c & 30, 000 Stock A/C (1st April, 2015) & 6, 000 Cash at Bank & 3, 000 Cash in Hand & 1, 320 Machinery A/c & 18, 000 Furniture and Fittings A/c & 4, 080 Purchases A/c & 45, 000 Wages A/c & 30, 000 Fuel and Power A/c & 9, 000 Factory Lighting A/c & 600 Salaries A/c & 21, 000 Discount Allowed A/c & 1, 500 Discount Received A/c & 900 Advertising A/c & 15, 000 Sundry Office Expenses A/c & 12, 000 Sales A/c & 1, 50, 000 Sundry Debtors & 25, 500 Sundry Creditors & 11, 100 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 92, 000 - --------- - - --------- - \end{matrix}$

Closing stock was valued at Rs. 8,100

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