Sundry Debtors (Accounts Receivable) And Sundry Creditors (Accounts Payable) In Trial Balance
W h at If In A Trial B alance, Sundry Debtors And Sundry Creditors B alances Are Shown On B oth Deb it A nd Credit Column, T h en What Will B e Its Effect In Balance S h eet? In order to know t he a nswer of t his questio n we must know t he followi ng important points ab out b oth Su ndry Deb tors / Accou nts Receivab le a nd Sundry Creditor / Accounts Payable . Sundry Deb tor or Accou nts Receivab le is a Curre nt Asset w hich have favora b le de b it b ala nce. However, there are some reaso ns due to w hich it has N egative Credit Balance suc h as receivi ng advance payments from customers, wrong information entered, etc. On t he other ha nd, Sundry Creditors have favora b le credit b ala nce, so it is a Current Liab ility . b ut it has N egative or Unfavorable Debit Balance due to some reasons suc h more amou nt paid to suppliers / vendors t ha n t he actual amou nt, wrong information related to purc hase order e ntered, etc. Accounting ...