Distinguish between debtors and creditors.
| 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. |
Popular Questions of Class 11th accountancy
- Q:-
Differentiate between source documents and vouchers.
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What is a journal? Give a specimen of journal showing at least five entries.
- Q:- The accounting concepts and accounting standards are generally referred to as the essence of financial accounting. Comment.
- Q:- Describe the role of accounting in the modern world.
- Q:- Giving examples, explain each of the following accounting terms:
Fixed assets
Gain
Profit
Revenue
Expenses
Short-term liability
Capital - Q:- Explain the development and role of accounting.
- Q:- Complete the following work sheet:
(i) If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
(iii) Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii) The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept. - Q:- Should a transaction be first recorded in a journal or ledger? Why?
- Q:-
Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.
Recently Viewed Questions of Class 11th accountancy
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'Accounting information should be comparable'. Do you agree with this statement? Give two reasons.
- Q:- The role of accounting has changed over the period of time- Do you agree? Explain.
- Q:- Explain the development and role of accounting.
- Q:- What is the money measurement concept? Which one factor can make it difficult to compare the monetary values of one year with the monetary values of another year?
- Q:- Describe the role of accounting in the modern world.
- Q:-
Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.
- Q:- State what is end product of financial accounting?
- Q:- Should a transaction be first recorded in a journal or ledger? Why?
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Prepare the accounting equation on the basis of the following data.
1. Harsha started business with cash ₹ 2,00,000
2. Purchased goods from Naman for cash ₹ 40,000
3. Sold goods to Bhanu costing ₹ 10,000/- for ₹ 12,000
4. Bought furniture on credit ₹ 7,000
- Q:- Giving examples, explain each of the following accounting terms:
Fixed assets
Gain
Profit
Revenue
Expenses
Short-term liability
Capital
1 Comment(s) on this Question
Very nice answers... I like this
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