CREDITORS OR ACCOUNTS PAYABLE:

CREDITORS OR ACCOUNTS PAYABLE:

When goods are purchased from the suppliers (sellers) on credit basis, creditors come into existence. Creditors are the persons or suppliers from whom goods have been purchased on credit basis and bo whom the money is to be paid in near future. The accounts of such persons (suppliers) are known as accounts payable". Accounts payable means, the amount which a business expects to pay to its suppliers for goods purchased or services received from them on credit basis.

The person or business who will receive the money - Creditor. The person or business who will pay the money - Debtor

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