12 Debtors and creditors
‘Creditors have better memories than debtors; creditors are a superstitious sect, great observers of set days and times.’
Benjamin Franklin, scientist, inventor, author and American politician
In a nutshell
Credit is one of the cornerstones of modern business. The majority of companies offer and receive credit.
Customers who receive credit are known as debtors (or receivables). Suppliers who offer credit are known as creditors (or payables).
Debtors are assets as they will be a future cash inflow or ‘benefit’. Creditors are liabilities as they will be a future cash outflow or cost.
Need to know 
Why is this important? ...
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