The debtor is ... What distinguishes debtors from creditors

In accordance with the law, the debtor is a debtor who can be both a citizen (an individual) and an organization (a legal entity), as well as a subject of the economy that is in arrears.

Accounts receivable and accounts payable. Concepts

At present, the debts of participants in economic relations have become a large part of the entire system of economic and economic turnover. Obligations of this kind in modern times are considered as an integral element and the need for financial calculations.

Debt can be payables and receivables. These are the main types of debts. Participants of accounts receivable and accounts payable are, respectively, debtors and creditors. The concept of this type of debt must be formulated in more detail.

A receivable is a sum consisting of debts that are due to an organization as a result of its interaction with other organizations or individuals in the economic sphere. The presence of such debts means that the means of the enterprise to which they must, are used not by him, but by the party that should.

Accounts payable refers to the amount levied from the debtor in favor of another person who needs to repay the debt. This debt obligation arises when the agreed time of payment for the executed obligation, payment for the purchased goods, received services expired, and the payment was never made. The difference from accounts receivable is that the debtor-person uses funds that do not really belong to him, that is, the means that are his debts.

Common features and differences

Accounts receivable and payable are common and different from each other. The common thing is that both promissory notes are based on a gap in time between execution and payment. Such a process is the non-exercise of the function of money as a means of payment.

Differences in arrears are the features of their functioning as types of obligations that represent debt.

The difference between the debtor and the creditor

In order to understand the distinctive characteristics, it is necessary to determine that the debtor is a person who has a debt to another person. In other words, he is the debtor of the creditor.

Debtors and creditors differ from each other in that the latter have the right to demand from the first debt repayment. Those who borrowed, have only one obligation - to return the money.

What is meant by contractual relations

Debtors and creditors are often counterparts of each other. In this case, the contract must be paid. In such documents, one of the counterparties must sell the product or fulfill any obligation, provide a service, perform work, etc. The second counterparty must pay this product or service within the term established by the contract. As soon as there is a delay in payment, the overdue person becomes a debtor. Thus, the debtor is a counterparty overdue for payment under the contract.

Write-off of accounts receivable

It must be remembered that most of the amounts of debt are not realized quickly. So, excessive payments to tax authorities, as well as financial bodies, can be written off from the balance only after the amount is recalculated for payments that will be made in the future. Employee indebtedness is generally repaid in installments for a long time, by means of deductions from the amounts due to them for payment. There may be persons who resigned from the organization and did not return the debt voluntarily, in that case, after the limitation period has expired, the amounts of the debt are written off as losses. Also, for a sufficiently long period, the amounts collected for claims are usually not repaid.

He writes off the accounts receivable, as well as any other debts, the accountant, in the period when the next tax period ends. Usually, certain days for writing off such debts are not established. Therefore, as soon as the limitation period for a certain debt has expired, it must be subject to write-off.

The tasks of accounting settlements with debtors

Payments with debtors are of no small importance. The most important component of the accounting documentation is the accounting of debt obligations. On the basis of the law, the obligation is always connected with the right of the creditor to bind the debtor to the obligatory performance of the corresponding actions. Fulfillment of obligations is a legal relationship, from a certain point of view, specific persons related to this legal relationship have mutual obligations in this legal relationship.

If one person - the debtor - voluntarily carries out the action for the fulfillment of obligations, the second person is the creditor - in any case must accept this performance. If the debtor does not fulfill the obligation voluntarily, the creditor has the right to apply to the court for compulsory execution. The court may oblige the debtor to enforce a compulsory obligation from all of its property. Another feature is that the debtor is a debtor, so his duty can be enforced by the court, and the creditor is not obliged, but has the right to apply to the court, for the debtor's performance of the obligation.

The obligation always relates to two persons - the creditor and the debtor. It is possible to single out the main tasks that are put before the function of accounting settlements with debtors. Among them:

• Accounting for the movement of funds, as well as transactions for their movement, which must be complete, accurate and accurate;
• Compliance with and control over cash and payment and settlement discipline;
• Establishment of the composition of receivables, its structure (this includes determining the terms of payment, type of debt, etc.);
• Establishment of the composition of overdue accounts receivable.

Accounts reflecting settlements with debtors

By keeping accounting, the employee needs to reflect the receivables. Must be accounted for by all debtors. The account, which takes into account debts of this kind, is formulated in the accounting chart of accounts.

All calculations should be reflected on the following accounts, which in turn, except for numbers, have special names. These are accounts No. 60, 62, 68, 69, 70, 71, 73, 75, 76.

Other debtors

Among all the debtors are other debtors - these are people whose details must be reflected in the account in the column "Other ..." on a specially provided for this article. It combines the most diverse amounts that are included in the same group. This includes both tax arrears and workers' debts, provided they were provided with some amounts, such as loans. Loans can be issued either from the funds of an enterprise or organization, or from banks. The same amount is required for the same amount of money to recover damages. Also on this article include the debt of accountable persons, shortages of commodity values, debts to suppliers. There are a number of other amounts that also apply to this article.

Settlements with other debtors

In the accounting account designed to account for settlements with different debts, except for those for which settlements are made with separate accounts, settlements with other debtors are taken into account.

Currently, the chart of accounts includes a large number of accounts in order to account for transactions that were previously accounted for in account 76, which was intended for settlements with different debtors. On the same account, settlements with creditors were also taken into account.

Currently there is an account 377, which accounts for settlements with other debtors. Settlements with other creditors are now conducted under account 685. Account 377 is provided to account for settlements with debtors, mainly with personnel, subjects of joint ownership, in case they are not created as a separate legal entity. As already mentioned above, settlements with personnel are made in cases when they were given a loan or they have other obligations to the employer.

Also on account 377, settlements with various banking organizations are reflected, in particular, on charges for servicing by a banking organization and other similar services provided by banking organizations that are not directly related to the activities of any banking institution.