Asked by: Kostadin Wichkowsk
asked in category: General Last Updated: 13th June, 2020

What is creditor account?

CREDITOR :-A Creditor is a person or business organisation from whom we borrow goods and services , and liable to pay a certain amount within a certain period of time. Creditors Account :- is an account in which we record all the transactions with our creditor from whom we borrow goods and services.

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In this manner, what is an example of a creditor?

The definition of a creditor is a person to whom money is owed or someone who provides credit. An example of a creditor is a credit card company. YourDictionary definition and usage example.

Likewise, what is a debtor and creditor in accounts? 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.

Beside this, what is the meaning of creditors in accounting?

Definition: Creditor is an accounting expression to indicate a party that has delivered a product, service or loan, and is owed money by one or more debtors. Creditors are entities, companies or people of a legal nature who have provided goods or services, or loaned money to a debtor.

What is a debtor in accounts?

A debtor is an person, company or organization who owes money. In legal terms, anyone who voluntarily declares bankruptcy is also known as a debtor. Debtors owe money to creditors, and therefore it it similar to the customer-supplier relationship. In very general terms, a debtor is anyone who owes money to a creditor.

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