Comparisions Between Debtors and Creditors - Bzziii

Distinguish between debtors and creditors.

Differences between debtors and creditors are given below-

Basics of Comparision	Debtors	Creditors
Meaning	Debtors are the parties who owes debt towards the company.	Creditors are the parties to whom the company owes a debt.
Payment	Payments are received from them.	Payments are made to them.
Nature	They have debit balance to the firm.	They have credit balance to the firm.
Provision for doubtful debts	Created on debtors	Not created on creditors.
Discount allowance	Discount can be allowed to the debtors by the person who extends credit	Creditors can be offer discounts to the debtors to whom they extend the credit
Shown	Debtors 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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Introduction to Accounting
Class 11-Accountancy