Anushka Lalwani In: 1. Financial Accounting > Accounting Terms & Basics What is the meaning of sundry debtors? What is the meaning of sundry debtors? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent GautamSaxena Curious . 2022-08-13T16:19:57+00:00Added an answer on August 13, 2022 at 4:19 pm This answer was edited. Sundry debtor refers to either a person or an entity that owes money to the business. If someone buys some goods/services from the business and the payment is yet to be received, a group of such individuals or entities is called sundry debtors. Sundry debtors are also referred to as trade receivables or account receivables. The term ‘Sundry’ means various or several, referring to a collection of miscellaneous items combined under one head. Sundry debtors typically arise from core business activities such as sales of goods or services. The business treats them as an asset. Example Suppose you run a business, ABC Ltd. Mr. Y bought goods from you on credit. Therefore, Mr. Y will be recorded as Debtor (current asset) in your books of accounts. Similarly, a collection of such debtors is viewed as sundry debtors from the business’ point of view. Journal Entry Rules As per the golden rules of accounting, we ‘debit the receiver and credit the receiver’. That’s how in this journal entry we’ll be debiting the sundry debtor’s account. Also, ‘debit what comes in and credit what goes out.’ That’s why sales a/c is credited and cash a/c is debited. As per the modern rules of accounting, ‘debit the increase in asset and credit the decrease in asset’. That’s why we debit sundry debtors and cash a/c. And credit sales a/c when goods are sold and inventory decreases. Why debtor is an asset? As we know, a debtor refers to a person or entity who owes money to the business which means, the money is to be received by them in the future, making them an asset. On the other hand, creditors are a liability to the firm as we owe them money and it is to be paid by us in the near future, making it an obligation for the firm. Sundry Debtors in Balance Sheet Sundry debtors are shown under the current asset heading on the balance sheet. They are often referred to as account receivables. Balance Sheet (for the year ending….) 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions Accounting terms What do you mean by goodwill ? What do you mean by LLP ? What are kind or classes of shares issued by companies in accounting ? Which type of accounting is done by NPOs ? How to locate errors in trial balance? what does a trial balance include?