Sundry Debtors & Sundry Creditors: Meaning
Definition
Sundry debtors are customers who owe the business for goods or services sold on credit; sundry creditors are suppliers the business owes for credit purchases. In Schedule III they are called trade receivables and trade payables.
| Term | Sundry debtors and sundry creditors |
|---|---|
| In Hindi | विविध देनदार और विविध लेनदार |
| Area | Accounting |
| Search phrase | sundry debtors meaning |
| Try it | Accounts receivable |
विविध देनदार और विविध लेनदार — हिंदी में अर्थ
विविध देनदार वे ग्राहक हैं जिन पर उधार बिक्री का पैसा बकाया है; विविध लेनदार वे सप्लायर हैं जिन्हें उधार खरीद का पैसा देना है। शेड्यूल III में इन्हें ट्रेड रिसीवेबल्स और ट्रेड पेयेबल्स कहते हैं।
Why 'sundry'
Sundry means 'many and various'. A business has many small customer and supplier accounts, so instead of listing each one in the balance sheet they are grouped under one heading, with a schedule of individual balances behind it. In Indian accounting software the ledger groups are still named Sundry Debtors and Sundry Creditors.
Only trade balances belong here. Money lent to an employee, an advance to a contractor for a building, or a loan from a relative goes in loans and advances or borrowings, not sundry debtors or creditors.
In the balance sheet
Sundry debtors are a current asset (trade receivables), shown net of any provision for doubtful debts and with an ageing split — outstanding for less than six months and more. Sundry creditors are a current liability (trade payables), with dues to micro and small enterprises shown separately as required by Schedule III.
Example
Sold goods on credit to 40 customers totalling ₹18,40,000 and bought on credit from 25 suppliers totalling ₹11,20,000: the balance sheet shows Sundry Debtors ₹18,40,000 (asset) and Sundry Creditors ₹11,20,000 (liability).
Related tools and guides
Frequently asked questions
What is the meaning of sundry debtors?
Customers who owe the business money for credit sales — trade receivables.
What is the meaning of sundry creditors?
Suppliers to whom the business owes money for credit purchases — trade payables.
Are sundry debtors an asset?
Yes, a current asset. Sundry creditors are a current liability.
Is a debit balance in a supplier's account a sundry debtor?
It is an advance to supplier; most businesses show it under advances rather than mixing it with customer debtors.
Related terms
- Accounts receivableAccounts receivable is the money customers owe a business for goods or services already supplied on credit. It is shown as trade receivables (debtors) under current assets.
- Accrual vs cash basis of accountingUnder the accrual (mercantile) basis, income and expenses are recorded when they are earned or incurred, whatever the payment date. Under the cash basis, they are recorded only when cash is actually received or paid.
- Balance sheetA balance sheet is a statement of what a business owns (assets) and what it owes (liabilities and owners' equity) on a particular date. Total assets always equal total equity plus liabilities.
- Cash conversion cycleThe cash conversion cycle (CCC) is the number of days between paying for raw material and collecting cash from the customer for the finished goods: days inventory outstanding plus days sales outstanding minus days payables outstanding.
- Contra entryA contra entry is a transaction between cash and bank accounts of the same business — such as cash deposited into the bank or cash withdrawn for office use — where both the debit and the credit side are cash or bank.
- Contribution marginContribution margin is selling price minus variable cost. It is the amount each sale contributes first towards fixed costs and then to profit; as a percentage of sales it is called the contribution margin ratio or P/V ratio.