Question

Difference between debtors and creditors with examples

Answer 1

Answer:

Debtors = Who have took products or cash from you on credit and will pay them back on future

Creditors Those persons from you have took stock/raw materials/cash on credit and you have to pay them back in the future.

For Example :

Suppose there is a company named ABC ltd. and the company has took it's raw material from John on credit.

Then Santosh will be the creditor of the company.

&

if ABC Company sold it's good to Tina on credit then Tina will be a debtor for the Company