Accountancy, asked by bpsanginpdjj7a, 11 months ago

What are the differences between debts book debts

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Answered by NandhaMK36

First part, Book debts means the amount that is owed by the business from its customers. Thus, trade receivables (debtors and bills receivable) are the book debts of the business. Second Part, Debtors are all those those persons, who are liable to pay money to the business.In this case, book debt is money owed to your company. In other words, book debt is your accounts receivable. Book debt refers to the amount that is receivable from people including debtors and others against goods sold and services rendered. Book debts are assets of an enterprise .

bpsanginpdjj7a: debts means loan or receivable? please clear me

NandhaMK36: debt account and the loan receivable balance are both reduced for the book value of theloan, or the outstanding loan balance. The allowance for doubtful accounts method is also used to record the accounts receivable that are not collectable.

NandhaMK36: You have put the Loans Advances in Loan Receivable, a current asset acccount type. The Loan Payable is a liability account. Loan Receivable is when someone owes your company. Loan Payable is when your company owes someone. The payments received are collections of the Loan Receivable and should be credit to that account .

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