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.
Cash A/C

To Bank A/C

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.

0 Responses to “Journal, Ledger, Debtor, Creditor,Voucher”

Post a Comment


The ideas, thoughts and concepts expressed here are my own. They, in no way reflect those of my employer or any other organization/client that I am associated. The articles presented doesn't imply to any particular organization or client and are meant only for knowledge Sharing purpose. The articles can't be reproduced or copied without the Owner's knowledge or permission.