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Debtors (also known as receivables) are those who owe us money.
Creditors (also known as payables) are those to whom we owe money.
Thanks for your answer.
Please also explain what does debited and credited mean in simple words?
When some item is debited or credited what does it really mean. Please give me an example?
This is not relevant for Paper MA except in-so-far as I explain in my free lectures (it just could, for example, be relevant for Process costing and is explained there).
Full knowledge of debits and credits is Paper FA (and is covered in detail in my Paper FA lectures).
Maybe I didn’t clear what I mean. If an item such as interest, cost, capital etc is debited or credited what does it imply?
For eg interest is debited or credited into your account.
For eg COGS is debited or credited into income statement.
For eg Capital is debited or credited into balance sheet
I know its not relevant to this paper but it is relevant to other paper. I did ask because I couldn’t understand them
As you have written, none of this is relevant for Paper MA.
They are all very relevant for Paper FA and everything you ask is explained in detail in our free Paper FA lectures. You cannot expect us to type out all our lectures here (and certainly not in the Paper MA forum) 🙂 🙂
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