Accounts Notes: DEFINE DEBTOR AND CREDITOR

Tuesday 12 April 2011

DEFINE DEBTOR AND CREDITOR

 DEBTOR:It is the current asset, It means a person or firm or organisation from whom the person or firm or organisation will get some money or its worth.
 CREDITOR:It is the current liability,It means a person or firm or organisation to whom the person or firm or organisation owes money or its worth
 BALANCE SHEET: It is a statement shows the posotion in the form of assets&liabilities of the organisation at a given date.
 PROFIT &LOSS a/c: It is a ledger account which shows the net profit or loss of the organisation for a given period.
 CASH FLOW&FUND FLOW STATEMENTS:
i)cashflow statement shows the cash infloe and outflow during the period.
ii)fundflow statement shows the sources from which funds have been raised,and application of those funds.
 OTHER NOTES&SCHEDULES: These are some notes and schedules which give supporting for other financial statements