Distinguish between debtors and creditors on the basis of Meaning Payment Shown in Balance Sheet
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- Meaning
- Debtors
A debtor is na entity or person that owes money to another party
- Creditor
A creditor is an entity or person that lends
money or extends credit to another
- Payment
- Debtor
Payment or amount received from them
- Creditor
Payment or the loan are made to them
- Balance sheet
- Debtor
Debtor is shown as asset in the balance sheet under the current assets section
- Creditor
Creditor is shown as liability in the balance sheet in current liabilities section
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