Question

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

• A. Rent outstanding.
• B. Prepaid expenses.
• C. Purchases returns.
• D. Excess of income over expenses.

Answer 1

The correct option is B Prepaid expenses.

Prepaid expenses means the expense which are already paid but the services against which are yet to receive. While passing the closing entry, expenses account will be credited by debiting the prepaid expense.