Prepaid Insurance Debit Or Credit Normal Balance. Indicate whether each account below has a normal debit or a normal credit balance. Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
Are shown in the trial balance on the debit side as they are initially an asset for the business, however, once the benefit is received, the value of the asset falls. The ending balance, either debit or credit, would be classified as prepaid or accrued insurance, at the end of the period. The normal balance side of.