Question

Give the word term or phrase which can substitute each of the following statements :

A person to whom amount is payable.

Answer 1

A person to whom amount is payable- Creditor

Explanation:
All persons or organisations to which a firm is liable to pay money are called creditors. They represent those persons from whom goods have been purchased or services have been procured on credit. For example, if goods worth Rs 5,000 were purchased on credit from Mohan, then he will become the creditor of the business till the payment is made to him.