The initial trial balance total is £250,000. What is the redrafted trial balance total after processing the adjustments below? Adjustment Required Amount Accrue for electricity £500 Prepay for insurance £200
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✓ Correct answer: E. £250,500Accruals increase expenses (Dr) and liabilities (Cr), adding £500 to both trial balance column totals. Prepayments increase assets (Dr) and decrease expenses (Cr Expense -> Dr decrease, effectively shifting Dr balance from Expense to Asset). Prepayments do not change the total Dr or Cr value, only the classification. New total: $$$250{,}000 + 500 = 250{,}500$$$.
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