can someone tell me is a sale a debtor or creditor,also a purchase is this a debtor or creditor
2007-06-30 07:56:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
A sale is a credit. All items of a revenue nature (by whatever name - sale, income from services rendered, professional fees earned, rental income, etc) are credits. The customer you sold to is your debtor. Debtors are people who owe you money. Debtors are assets. All your debtors go to the Accounts Receivable account (aka Trade Debtors a/c or Debtors Control a/c). When you make a sale on credit (i.e. not for cash), you'd
Dr A/cs receivable $xxx
Cr Sales $xxx
A purchase is a debit. All items of an expense nature (e.g. salaries, rent, utilities, stationery, depreciation, advertising, audit fee, etc) are debits. The supplier/vendor you bought from is your creditor. Creditors are people you owe money to. Creditors are liabilities. All your creditors go to the Accounts Payable account (aka Trade Creditors a/c or Creditors Control a/c). When you make a purchase, you'd
Dr Purchases $xxx
Cr A/cs Payable $xxx
2007-06-30 14:48:48 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
This all depends if you are the one making the sale or payment!
If you make sales to other people; any sales made by you, but not yet received by you, are your debtors( they are in debt to you).
If you make a purchase, but have not yet paid for it, those are your creditors( they are giving you credit).
Hope that helps!
2007-07-01 03:45:01 · answer #2 · answered by karen 2 · 0⤊ 0⤋
Don`t really understand your question dude.If you mean credit and debit in relation to a sale or purchase,then a sale is a credit because you earn money from the sale which is an addition to your account.However,a purchase is a debit because you spend money to purchase and that sum is deducted from your account.Hope this answers your query.
2007-06-30 15:10:30 · answer #3 · answered by quest? 3 · 1⤊ 0⤋
If you are the debtor you owe the money if you are the creditor youare owed the money .
2007-06-30 16:45:00 · answer #4 · answered by pollywallydoodle 3 · 0⤊ 0⤋
Credit means you have money given to you. Debit means money is taken from you.
2007-06-30 15:06:15 · answer #5 · answered by grumpyturnip 2 · 1⤊ 0⤋
if you sell you are credited with the appropriate funds
if you buy an item your account would be debited with the appropriate funds
2007-06-30 15:36:31 · answer #6 · answered by Anonymous · 1⤊ 0⤋