Meaning of Sundry debtor and creditors
What are sundry debtor and sundry creditor. When a businessman starts a business, the businessman has to purchase many types of goods and services in the business. When the business of the businessman runs smoothly, then there are many types of transactions which take place in cash as well as in loan. In simple language, if the goods are sales by the businessman to a customer on credit, then the customer is called a sundry debtor for the businessman, and if the purchases are made on credit, then the person from whom the item is purchased is called a sundry creditor.
Example of sundry debtor & sundry creditors
Friends, if you still have some questions in your mind, then after reading this you will get the answers to your question.
Sundry Debtor:– When we sell to, or provide our services to, someone in the goods, as if we are producing something. And when we sell that produced goods to any person or firm, then that person or firm will be called Sundry Debtor for us. And when we will do its accounting and create its account then we will put it in sundry Debtor group. But friends, we will not include those in this group to whom we have given loans.
Sundry Creditor:- sundry creditor: – This includes all those people who ask us for money, or from whom we have taken a loan from the goods and are yet to pay.
when we do production in business, we need a lot of raw materials and other goods. And when we purchase goods in such quantity and if their money is left, then we give late then we will call these people sundry creditor, and while doing their accounting they have to be put in sundry creditor group.
In this group, we keep all those people who ask us for money, from whom we have either purchased any goods or have taken any services.
But friends from whom we have taken loan, we will not include them in this group.
Why Important sundry debtors and sundry creditor for Balance Sheet
Friends, when we finalize the Balance Sheet on 31st March, many times it happens that the balance of the people we had put in sundry creditor group is coming towards credit, or debited those whom we had put in sundry creditor group. Comes to the side. So friends, you can do this in such a situation that the side the account is coming from, put it in the same group. Suppose if the balance of the person with sundry creditor is coming towards debit, then you put it in the sundry debtor group. You will benefit from this that your balance sheet will be ready soon, and you will not have any problem in viewing the details of the group.