Distinguish between debtors and creditors; Profit and Gain.
Difference between Debtors and Creditors is given below.
Basis of difference |
Debtors |
Creditors |
Meaning |
Persons or organisations that are liable to pay money to a firm are called debtors. |
Persons or organisations to whom the firm is liable to pay money are called creditors. |
Nature |
They have debit balance to the firm. |
They have credit balance to the firm. |
Payment |
Payments are received from them. |
Payments are made to them. |
Shown |
They are shown as assets in the Balance sheet under Current Assets. |
They are shown as liabilities in the Balance Sheet under Current Liabilities. |