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Thursday, February 18, 2010

Journal, Ledger, Debtor, Creditor,Voucher

Journal – A book in which all the Daily Transactions are recorded E.g. – A simple Journal Entry - Showing the Transfer of 1000 Rs from Cash A/C to Bank A/C

Sr No.
Date
Particulars
Db
Cr
1.
7-7-2004
Cash A/C

To Bank A/C
2000


2000
Ledger – A book in which all the transactions (Journal Entries) are posted under respective account heads .

DebtorAn individual or company that owes debt to another individual or company (the creditor), as a result of borrowing or issuing bonds. Also called obligor.

Creditor – A person to whom business owes money becomes a creditor.

 A debtor is a person or enterprise that owes money to another party. (The party to whom the money is owed is often a supplier or bank that will be referred to as the creditor.)A creditor is a person, bank, or other enterprise that has lent money or extended credit to another party. (The party to whom the credit has been granted is often a customer that will now be referred to as a debtor.)If Company X borrowed money from its bank, Company X is the debtor and the bank is the creditor. If Supplier A sold merchandise to Retailer B, then Supplier A is the creditor and Retailer B is the debtor.

Voucher – Any document i.e. written evidence in support of a business transaction is called a voucher.

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