Comparisions Between Debtors and Creditors - Bzziii

Differences between debtors and creditors are given below-
Distinguish between debtors and creditors.




Differences between debtors and creditors are given below-

Basics of ComparisionDebtorsCreditors
MeaningDebtors are the parties who owes debt towards the company.Creditors are the parties to whom the company owes a debt.
PaymentPayments are received from them.Payments are made to them.
NatureThey have debit balance to the firm.They have credit balance to the firm.
Provision for doubtful debtsCreated on debtorsNot created on creditors.
Discount allowanceDiscount can be allowed to the debtors by the person who extends creditCreditors can be offer discounts to the debtors to whom they extend the credit
ShownDebtors are shown as assets in the Balance sheet under Current Assets.Creditors are shown as liabilities in the Balance Sheet under Current Liabilities.







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