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SS1: FINANCIAL ACCOUNTING - 1ST TERM

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  1. Introduction to Booking Keeping and Accounting | Week 1
    9 Topics
    |
    1 Quiz
  2. Introduction to Books of Account | Week 2
    5 Topics
    |
    1 Quiz
  3. Subsidiary Books of Account I | Week 3
    4 Topics
    |
    1 Quiz
  4. Subsidiary Books of Account I | Week 4
    4 Topics
    |
    1 Quiz
  5. Principles of Double Entry Book Keeping | Week 5
    1 Topic
    |
    1 Quiz
  6. Cash Book | Week 6
    6 Topics
    |
    1 Quiz
  7. Petty Cash Book | Week 7
    1 Topic
    |
    1 Quiz



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Debtor: This is the customer for goods sold on credit. He is an entity that owes another entity. A debtor may be an individual, corporate organization or government.

Features of Debtors

(i) It is a current asset

(ii) Debtor is an item in the balance sheet

(iii) Debtor is a Customer

(iv) It is an entity who owes another entity

(v) Part of debtor can be written off as bad debt.

Creditors

This is a supplier for goods bought on credit. A creditor is an individual enterprise that extended credit to another entity. He can also be referred to as a person or bank that lent money to another person.

Features of a Creditor

(i) It is a liability

(ii) It is recorded in the balance sheet.

(iii) A Creditor is a supplier for goods purchased on credit.

Differences between Creditors and Debtors

CreditorsDebtors
1.An entity that lend or extended credit to another.An entity that owes money to another party.
2.It is recorded as a liability in balance sheet.It is recorded as an asset in the balance sheet.
3.He is a supplier for goods bought on credit.He is a customer for goods sold on credit.
4.It is to PurchasesIt is to sales.

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