diff --git a/src/libxrpl/ledger/View.cpp b/src/libxrpl/ledger/View.cpp
index f861aff41c..3efd6ab2b7 100644
--- a/src/libxrpl/ledger/View.cpp
+++ b/src/libxrpl/ledger/View.cpp
@@ -326,37 +326,27 @@ checkInsufficientReserve(
         auto const sle = view.read(
             keylet::sponsor(sponsorSle->getAccountID(sfAccount), accSle->getAccountID(sfAccount)));
 
-        if (isCoSigning)
+        if (!isCoSigning && !sle)
+            // prefunded sponsor should have a sponsorship entry
+            return tecINTERNAL;  // LCOV_EXCL_LINE
+
+        if (sle)
         {
-            if (sle)
-            {
-                auto const reserveCountAllowed = sle->getFieldU32(sfReserveCount);
-                if (reserveCountAllowed < ownerCountDelta)
-                    return tecINSUFFICIENT_RESERVE;
-
-                return tesSUCCESS;
-            }
-            auto const sponsorBalance = sponsorSle->getFieldAmount(sfBalance);
-            STAmount const sponsorReserve{view.fees().accountReserve(
-                sponsorSle->getFieldU32(sfOwnerCount),
-                sponsorSle->getFieldU32(sfSponsoredOwnerCount),
-                sponsorSle->getFieldU32(sfSponsoringOwnerCount) + ownerCountDelta,
-                sponsorSle->isFieldPresent(sfSponsor),
-                sponsorSle->getFieldU32(sfSponsoringAccountCount) + accountCountDelta)};
-
-            if (sponsorBalance < sponsorReserve)
-                return tecINSUFFICIENT_RESERVE;
-        }
-        else
-        {
-            // pre funded
-            if (!sle)
-                return tecINTERNAL;  // LCOV_EXCL_LINE
-
             auto const reserveCountAllowed = sle->getFieldU32(sfReserveCount);
             if (reserveCountAllowed < ownerCountDelta)
                 return tecINSUFFICIENT_RESERVE;
         }
+
+        auto const sponsorBalance = sponsorSle->getFieldAmount(sfBalance);
+        STAmount const sponsorReserve{view.fees().accountReserve(
+            sponsorSle->getFieldU32(sfOwnerCount),
+            sponsorSle->getFieldU32(sfSponsoredOwnerCount),
+            sponsorSle->getFieldU32(sfSponsoringOwnerCount) + ownerCountDelta,
+            sponsorSle->isFieldPresent(sfSponsor),
+            sponsorSle->getFieldU32(sfSponsoringAccountCount) + accountCountDelta)};
+
+        if (sponsorBalance < sponsorReserve)
+            return tecINSUFFICIENT_RESERVE;
     }
     else
     {
diff --git a/src/test/app/Sponsor_test.cpp b/src/test/app/Sponsor_test.cpp
index 9c48f8ba25..cad1892fca 100644
--- a/src/test/app/Sponsor_test.cpp
+++ b/src/test/app/Sponsor_test.cpp
@@ -1854,6 +1854,58 @@ public:
         }
     }
 
+    void
+    testSponsorReserveSimple(bool cosigning)
+    {
+        testcase("SponsorReserveSimple");
+        using namespace test::jtx;
+        Env env{*this, testable_amendments()};
+        Account const alice("alice");
+        Account const sponsor("sponsor");
+
+        env.fund(XRP(10000), alice, sponsor);
+        env.close();
+
+        // test Sufficient sponsor balance
+        if (cosigning)
+        {
+            adjustAccountXRPBalance(env, sponsor, reserve(env, 99));
+
+            env(ticket::create(alice, 100),
+                sponsor::as(sponsor, spfSponsorReserve),
+                sig(sfSponsorSignature, sponsor),
+                ter(tecINSUFFICIENT_RESERVE));
+            env.close();
+
+            adjustAccountXRPBalance(env, sponsor, reserve(env, 100));
+
+            env(ticket::create(alice, 100),
+                sponsor::as(sponsor, spfSponsorReserve),
+                sig(sfSponsorSignature, sponsor),
+                ter(tesSUCCESS));
+            env.close();
+        }
+        else
+        {
+            env(sponsor::set_reserve(sponsor, 0, 250), sponsor::sponseeAcc(alice));
+            env.close();
+
+            adjustAccountXRPBalance(env, sponsor, reserve(env, 99 + 1 /* sponsor object*/));
+
+            env(ticket::create(alice, 100),
+                sponsor::as(sponsor, spfSponsorReserve),
+                ter(tecINSUFFICIENT_RESERVE));
+            env.close();
+
+            adjustAccountXRPBalance(env, sponsor, reserve(env, 100 + 1 /* sponsor object*/));
+
+            env(ticket::create(alice, 100),
+                sponsor::as(sponsor, spfSponsorReserve),
+                ter(tesSUCCESS));
+            env.close();
+        }
+    }
+
     // test helper for both cosigning and pre-funded sponsorship
     template <typename SubmitCallback>
     void
@@ -5577,6 +5629,7 @@ public:
     testSponsorReserve(bool cosigning)
     {
         testRequireFlag();
+        testSponsorReserveSimple(cosigning);
         testAMM(cosigning);
         testCheck(cosigning);
         testOffer(cosigning);