Debtors: A person who gets benefits/goods or assets without paying money at the same time, but liable to pay the value in the future time is known as debtor. In simple words, The person from whom the business has to receive money in future. E.g., Mr. Ashish purchased goods worth Rs. 5000 from Mr. Santosh. In this case Mr. Ashish is debtor of Mr. Santosh until he pays the full amount.
Creditors: A person who gives benefits/goods or assets without receiving money at the same time, but claim the value in the future time is known as creditor. In simple words, The person to whom the business has to pay money in future. E.g., Mr. Ashish purchased goods worth Rs. 5000 from Mr. Santosh. In this case Mr. Santosh is creditor of Mr. Ashish until he receives the full amount.
Stock: Stock means goods remain unsold on a particular date. There are two type of stock i.e. opening stock and closing stock.
Opening stock means stock remain unsold in the beginning of the accounting period.
Closing stock means stock remain unsold in the end of the accounting period.
For e.g.
If 5000 units purchased @ Rs. 20 per unit remain unsold at the end of year, then closing stock is Rs. 80000. this will be opening stock of subsequent year.
Creditors: A person who gives benefits/goods or assets without receiving money at the same time, but claim the value in the future time is known as creditor. In simple words, The person to whom the business has to pay money in future. E.g., Mr. Ashish purchased goods worth Rs. 5000 from Mr. Santosh. In this case Mr. Santosh is creditor of Mr. Ashish until he receives the full amount.
Stock: Stock means goods remain unsold on a particular date. There are two type of stock i.e. opening stock and closing stock.
Opening stock means stock remain unsold in the beginning of the accounting period.
Closing stock means stock remain unsold in the end of the accounting period.
For e.g.
If 5000 units purchased @ Rs. 20 per unit remain unsold at the end of year, then closing stock is Rs. 80000. this will be opening stock of subsequent year.
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