What is the Difference Between Sundry Debtors and Sundry Creditors?
🆚 Go to Comparative Table 🆚The main difference between sundry debtors and sundry creditors lies in their position in a company's balance sheet and the nature of the transactions they represent.
Sundry Debtors:
- Sundry debtors are customers who owe money to a business after purchasing goods or services on credit.
- They are considered assets on the balance sheet, as they represent money receivable from others.
- Sundry debtors are also known as 'sundry receivables' or 'accounts receivable'.
- They typically consist of small-scale customers who make infrequent credit purchases in small amounts.
Sundry Creditors:
- Sundry creditors are suppliers or businesses to whom a company owes money after purchasing goods or services on credit.
- They are considered liabilities on the balance sheet, as they represent an obligation to pay in the future.
- Sundry creditors are also known as 'accounts payable'.
- They usually consist of small-scale suppliers who provide goods or services on credit.
In summary, sundry debtors represent money owed to a business by its customers, while sundry creditors represent money owed by a business to its suppliers. Sundry debtors are considered assets, whereas sundry creditors are considered liabilities in a company's financial statements.
Comparative Table: Sundry Debtors vs Sundry Creditors
Here is a table comparing the differences between sundry debtors and sundry creditors:
Aspect | Sundry Debtors | Sundry Creditors |
---|---|---|
Meaning | Debtors who owe a sum of money to the company for sales made on account (credit) | Suppliers who have sold goods in small quantities to the company on credit |
Accounting | Come under the category of account receivable | Come under the category of account payable |
Asset/Liability | Assets of the company | Liabilities of the company |
Discounts | Discounts are allowed by the company | Discounts are received by the company |
Provision for doubtful debts | Provision for doubtful debts is created on debtors | Provision for doubtful debts is not created on creditors |
Latin Meaning | Debtor is derived from 'debere', meaning 'to owe' | Creditor is derived from 'creditum', meaning 'to loan' |
In summary, sundry debtors are customers who owe money to the company for sales made on credit, while sundry creditors are suppliers who have sold goods to the company on credit. Sundry debtors are considered assets, and sundry creditors are considered liabilities in accounting.
- Creditor vs Debtor
- Bankruptcy vs Debt Consolidation
- Accounts Payable vs Accounts Receivable
- Liability vs Debt
- Bankruptcy vs Insolvency
- Debit vs Credit
- Debt vs Equity
- Loan vs Debt
- Bad Debt vs Doubtful Debt
- Deficit vs Debt
- Recourse vs Non-Recourse Debt
- Debit Balance vs Credit Balance
- Liquidity vs Solvency
- Accounts Receivable vs Notes Receivable
- Account Payable vs Note Payable
- Accrued Expense vs Accounts Payable
- Statement of Affairs vs Balance Sheet
- Credit Note vs Debit Note
- Good Credit vs Bad Credit