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It will be shown separately in assets an liabilities respectively
Sundry Debtors net off debit balance will be recorded under the current assets header and Sundry creditors net off credit balance will be recorded under the current liability header.
Sundry Debtors net off credit balance will be recorded under the current liability header as advance payment and Sundry creditors net off debit balance will be recorded under the current assets header as prepayment.
Sundry Debtors are shown under the current assets & Sundry Creditors are Current Liabilities in the Balance Sheets
Sundry Debtors and Sundry creditors are shown under the current assets and Current Liabilities in the Balance Sheets.
SUNDRY DEBTORS WILL BE SHOWN UNDER CURRENT ASSETS AND SUNDRY CREDITORS UNDER CURRENT LIABILITIES IN THE BALANCE SHEET
These balances will increase the assets side as well as equities side of balance sheet.
BOTH THE BALANCES ARE OVERSTATED. FIRST WE NEED TO KNOCK OFF ALL DEBIT AND CREDIT BALANCES WHICH ARE BELONGS TO SAME PARTY UNLESS ADVANCES ARE RECEIVED FOR SOME SPECIFIC PURPOSE.
IN BALANCE SHEET - DEBTORS WILL REPORT UNDER CURRENT ASSETS- TRADE RECEIVABLE. AND CREDITORS WILL REPORT UNDER CURRENT LIABILITY - TRADE PAYABLE.
Sundry debtors total will be shown under CL and Sundry Creditors under CA, prepaid creditors are Current Assets, and prepaid debtors are Current Liabilities, they get classified under groups accordingly.
Sundry debtor balances will increase the debtors value shown in the balance sheet thereby increasing the asset value. Similarly, sundry creditor balances will increase the creditors value in the balance sheet thereby increasing the liabilities.
Trade Debtors or Trade Creditors assets hai ya liabilities
Sundry debtors increases the Assets Value and Sundry Creditors increasing the Liability Value in B/S.
