The total creditors account gives the information about the total liabilities of that account.
Creditor
A creditor is a person to whom a sum of money is payable. In credit purchases purchases A/c is debited and creditor’s a/c is credited and in case of purchase returns reverse entry is passed
Creditor’s A/c( Dr)
To purchases returns
It appears as a liability in the balance sheet.
Creditors can be are the commodity sellers as well as money lenders.
When we create the balance sheet, these commodities and amounts are then classified as current liabilities.
The creditor’s account should be checked on a regular basis to ensure that no incorrect credits have been made to any parties.
A creditor account cannot have debit balance at any given time, and all liabilities must be represented.
Total Creditors Account (TCA) is the total amount of money that has been borrowed from banks, credit card companies, etc., over a period of time. This number can be used to determine how much debt a person is currently carrying.
What is a total creditor account?
A total creditor account (TCA) is a type of accounting system that allows you to view the details of all of your outstanding debts at once. This makes it easier to manage your debt, monitor spending, and prevent late payments.
“You’re probably wondering why I’m talking about TCA, right?” Well, because it can be useful to track your credit card usage, see where you spend your money, and even get rid of old debt.
FAQ
Total creditors account gives the information about?
The liability of that account.
Total debtors account gives the information about?
The Assets of that account.
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