Question

what is meaning of debtor and creditor​

Answer 1

Explanation:

The difference between a debtor and a creditor. March 04, 2018. A creditor is an entity or person that lends money or extends credit to another party. A debtor is an entity or person that owes money to another party. Thus, there is a creditor and a debtor in every lending arrangement.

Answer 2

ANSWER

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Debtor :- A person who owes money to the firm on account of goods sold on credit is a debtor. The term "debtors" involves the amount of money which customers owe to the firm. When goods are sold on credit, the money which the customers have not paid for receiving goods and services represents Debtors.

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Creditors :- A person to whom the firm owes money on account of credit purchases is a creditor. Creditors include trade creditors or creditors for the goods purchased on credit. Loans and advances raised by the firm are excluded from Trade creditors.

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