Question

what are debtors ?explain it by giving an example

Answer 1

A debtor is a person or entity that owes money. In other words, the debtor has a debt or legal obligation to pay an amount to another person or entity. e.g. if I have took money from someone so that person is a debtor.

Answer 2

Debtors :-

Debtors are those who owe money or anything else, or they are those persons from whom a business has to recover money on account of goods & services sold on credit.

For Example : Goods Sold to Mr. X for ₹ 1,000 on credit. Here, in this case, Mr. X is our Debtor or customer.

Hope it helps!