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A credit balance of a debtor means that the debtor has paid more than what they owe, resulting in a positive balance on their account. This situation can arise from overpayments, returns, or adjustments. Essentially, it indicates that the creditor may owe the debtor money or that the debtor has a prepaid amount available for future transactions. It reflects a favorable position for the debtor in terms of their financial dealings with the creditor.
What else can I help you with?
Is sundry debtors have debit or credit balance?
Sundry Debtors always have Debit balance, if it is showing credit balance ie, Advance paid by Sundry debtors or your customers, if you are given discount after making the invoice, or excess payment done by your customers then the Sundry Debtors balance will be Credit. Regards, Ajish
Is trade debtors a debit or credit transaction on the trial balance?
credit
Where is posted the debtors?
The debtor is posted on the credit side of the balance sheet.
When the debtors account shows the credit balance?
When business receives money in advance....
What does debtors mean in the balance sheet?
Assets
Is sundry debtors have debit or credit balance?
Sundry Debtors always have Debit balance, if it is showing credit balance ie, Advance paid by Sundry debtors or your customers, if you are given discount after making the invoice, or excess payment done by your customers then the Sundry Debtors balance will be Credit. Regards, Ajish
Is trade debtors a debit or credit transaction on the trial balance?
credit
Where is posted the debtors?
The debtor is posted on the credit side of the balance sheet.
When the debtors account shows the credit balance?
When business receives money in advance....
What does debtors mean in the balance sheet?
Assets
Does a debit decrease liability?
Yes, a debit decrease liability and a credit increase liability. if a debtors/customer make the repayment obligation, it will decrease debtors, meaning decrease in liability.
When does a debtors account have a credit balance?
goods in transit a debtor(customer) could also be a supplier(creditor)
What is a Debtors a credit or debit?
Debtors represent amounts owed to a business by its customers for goods or services provided on credit. In accounting, debtors are classified as assets on the balance sheet, specifically under current assets, because they indicate future cash inflows. Therefore, debtors are considered a debit entry in accounting terms, reflecting an increase in assets.
What do you mean sundry debtors?
customers to whom we sell goods on credit are known as debtors...for more detail see 'ULTIMATE BOOK OF ACCOUNTANCY'
What are debtors classified as?
Debtors are classified as individuals or entities that owe money to another party, typically as a result of borrowing or credit transactions. They can be categorized into different types, such as personal debtors, who owe money to banks or credit institutions, and business debtors, who owe money to suppliers or lenders. In accounting, debtors are often recorded as accounts receivable on a company's balance sheet, reflecting the amounts expected to be collected. Overall, debtors represent a key component of credit risk and financial management in both personal and business contexts.
Formula for calculation for debtors credit period?
average debtors/credit sales X 365
How do you Treat debtors in balance sheet?
Debtors is part of current asset and shown there in balance sheet.
