Question 9
Distinguish between debtors and creditors.
Answer
| Base | Debtors | Creditors |
| Meaning | Persons or organisations that are liable to pay money to a firm are called debtors. | Persons or organisations to whom the firm is liable to pay money are called creditors. |
| Nature | They have debit balance to the firm. | They have credit balance to the firm. |
|
Payment |
Payments are received from them. |
Payments are made to them. |
| Shown | They are shown as assets in the Balance sheet under Current Assets. | They are shown as liabilities in the Balance Sheet under Current Liabilities. |
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1 Comment(s) on this Question
Djsks
2018-06-23 15:55:13
Very nice answers... I like this
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