13 November 2008
Both the book debt and debtors implies receivable. 1.Debtors is current asset and the life of which is less than one year. Life of book debt may be more than 1 year. 2.There are certainity with regard receipts to debtors. Book debts are less certain as compared to the debtors. 3.Debtors are actually in exsit but book debt at time remains in the accounting books of the business
13 November 2008
The definition of book-debts includes, "debts which in the ordinary course of business would be entered in a trade book" for sales and services rendered and future debts and future rents under a hire purchase agreement. Bills of exchange also fall within the definition of book debts.
Debtors to a person means one who owes money to that person.
14 November 2008
I hope its the difference between dancer and dance. Replace dance with debt and dancer with debtor.
Book debts
A book debt is a sum of money due to a business. Generally sums owed to a business for goods or services supplied or work carried out will be covered under the term book debt. It is a wider term.
However, generally the term debtor we will use frequently for goods only in accounting.
17 November 2008
Accounts receivable (A/R) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established timeframe called credit or payment terms. An example of a common payment term is Net 30, meaning payment is due in the amount of the invoice 30 days from the date of invoice. Other common payment terms include Net 45 and Net 60 but could in reality be for any time period agreed upon by the vendor and client. While booking a receivable is accomplished by a simple accounting transaction, the process of maintaining and collecting payments on the accounts receivable subsidiary account balances can be a full time proposition. Depending on the industry in practice, accounts receivable payments can be received up to 10 - 15 days after the due date has been reached. These types of payment practices are sometimes developed by industry standards, corporate policy, or because of the financial condition of the client.
CAclubindia
