Define the term Debtor
Define the term Debtor. Is they our client?
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Debtor is our client. We sell the goods to him on credit. When we sell him goods with cash or cheque or credit card, then there is no requirement to open debtor account in books. Debtor’s closing balance is as well our current asset and it is shown in balance sheet’s asset side. This is as well mention in current asset whenever we compute working capital for maintains superior working capital management.
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