What are Sundry Creditors?

Transcript

What are Sundry Creditors Sundry Creditors It is a person or a business to whom we owes money for purchases made or services taken Note This is a liability in our books Example 1 Suppose we purchases goods from A for Rs 100000 and payment is not settled immediately. In this case, A is our Sundry Creditor Purchases Rs 100000 My A Company As we have not made Payment to A A is our Sundry creditor Person to whom business Owes Money For Purchase For Services For Other Reason Example Example Example We purchase Services Loan taken goods from Taken from from a Supplier a person person Supplier is Person is It is not called Sundry Sundry sundry creditor Creditor Creditor (Because it is not for Purchase of Goods or services) Note - Sundry Creditor is only for Credit Purchase and Not Cash Purchase What are Cash and Credit Purchase Cash Purchase Example 2 Suppose My company purchase goods for Rs 100000 from A on 10 Jan and make Payment to him on 10 Jan by cash Is it Cash Purchase or Credit Purchase Goods (10 Jan) A Company Cash (10 Jan) It is cash Purchase as Payment made to supplier immediately Note A is not our creditor in this case as company doesn’t owe or use money Credit Purchase Example 3 Suppose my company purchase goods for Rs 100000 from A on 10 Jan & make Payment to him after 5 days on 15 Jan Is it Cash Purchase or Credit Purchase Goods (10 Jan) A company Cheque (15 Jan) It is Credit Purchase Note A is our creditor in this case as company owe or use money Difference in Cash & Credit Purchase Cash Purchase Credit Purchase Payment settled Payment settled Immediately at later date No creditor Person from company for Cash purchase owes money is creditor