Question

When item is shown on the debit side of a trial balance?

• A. Purchase returns
• B. Rent Outstanding
• C. Prepaid Expenses
• D. None

Answer 1

Answer: (C)

Prepaid Expenses

A trial balance is the accounting equation of our business laid out in detail. It has our assets, expenses and drawings on the left (the debit side) and our liabilities, revenue and owner's equity on the right (the credit side)

Hence , Prepaid expense is an expense which is shown in Dr. side.