Credit And Debit Balance In Creditors Account Mean What
What Is Debit Balance In Accounts Payable / Sundry Creditors? | Reasons For Debit Balance In Vendor Account Debit balance in Creditors or Accounts Payable Account or Creditors / Accounts Payable Control Account means that the company paid more amount to the suppliers / vendors than the amount due from them. It may happen when the vendor received advances from the company during the accounting period. It may also be occurred due to the mistake in the vendor invoice i.e., sending wrong amount figures, missing items, etc., or the company returned some items purchased from vendors, etc. In that case, the supplier or vendor will refund that amount to the company exceeding the limit of amount payable by the company to him. Credit Balance In Sundry Creditors / Accounts Payable Account Credit balance in creditors or accounts payable account means that the business is liable to pay to creditor or accounts payable or suppliers or vendors for goods or mer...