please help! accounting - debtors and creditors (whats the difference)?

Question

helo!
can someone please tell me the difference between a debtor and a creditor! and how do you know the difference when filling in a general ledger?

thanks

Answer 1

Debtors are your customers, also known as accounts receivable. They owe you money for goods which you've sold to them on credit. They are entered in Accounts Receivable a/c in the general ledger.

Creditors are your suppliers and vendors, people whom you've bought goods from on credit. For that you owe them money. They're also known as Accounts Payable and are entered in Accounts Payable a/c in the general ledger.

Answer 2

Debtors owe you money.
Creditors have provided you credit (goods now for payment later) and now you owe them money.

Hope this helps!

Answer 3

debtors = someone who owes you money = assets
creditors = someone you owe money = liabilities

Answer 4

Please read through this

http://www.futureaccountant.com/accounting-process/study-notes/drawings-debtors-creditors.php