What are Trade Receivables?

Transcript

What are Trade Receivable? Trade Receivable Sale of Goods Money or Receivable Rendering of services It is the amount receivable against sale of goods or Rendering of services in the ordinary course of business Types of Trade Receivable TRADE RECEIVABLE Debtors Bill Receivable Customer has not Customer has not made the payment made the payment And And does not give in Accepts in writing a writing when he will bill of exchange that make the payment he will make a on specific date and payment specific time Amount and date Amount and date money will be money will be received is not Fixed received is Fixed Example My Company has Made Sales of Rs 100000 to Customer When Customer is a Debtor Sales Rs 100000 My Company Customer Customer has not made Payment and Not Specify Time and Date When is Bill Receivable Sales Rs 100000 My Company Customer Bill of Exchange Customer has not made Payment but he accepts Bill of Exchange mentioning Time and Date Bill of Exchange Stamp Amount: 100000 1 Month after the date,Pay to My Co sum of Rs 100000 for value Received Accepted Drawer Customer My Company Difference Between Sundry debtor And Bill Receivable Sundry Debtor Bill Receivable It is a person It means a Bill of Exchange or a business drawn by us or acepted who owes us money by other person to receive for sales made or a specific amount on a services rendered specific date Example Example A makes Sales to A makes Sales to B on 1 Jan B on 1 Jan B does not make B does not make payment to A payment to A at at time of sale time of sale But A a Bill Also B does not specify of exchange B gives when he will accepting in writing make payment that he will pay A and how much Rs 100000 on 1 Feb So B is a Debtor This Bill is Bill Receivable (in books of A) in books of A