Question

Differentiate between trade receivable and trade payable

Answer 1

Accounts payable are amounts a company owes because it purchased goods or services on credit from a supplier or vendor. ... Accounts receivable are assets. Let's assume that Company A sells merchandise to Company B on credit. (Perhaps the invoice states that the amount is d

different

Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business. ... To record a trade receivable, the accounting software creates a debit to the accounts receivable account and a credit to the sales account when you complete an invoiceue in 30 days.)

Answer 2

Trade Receivables - Debtors

Trade Payables - Creditors